Cogent Systems (Nasdaq:COGT) and MAXIMUS (NYSE:MMS) today announced that Cogent Systems has completed the acquisition of MAXIMUS Security Solutions Division (SSD) for an aggregate cash purchase price of $5 million. MAXIMUS Security Solutions Division provides identity (ID) management and credentialing integration services, security consulting, and custom web application development, including logical and physical access integration with Department of Defense Common Access Card (DoDCAC) and Personal Identity Verification (PIV) cards.
The acquisition is expected to contribute approximately $5 million in revenue to Cogent Systems for the remainder of 2008. With over fifteen years of experience designing and implementing multi-technology and multi-application smart card systems using biometric technologies, SSD is expected to enhance Cogent Systems’ ability to provide ID systems integration services to federal civilian agencies and military departments, state and local governments, and international customers. Additionally, the division has designed and operates ID management infrastructures and services for e-Authentication and healthcare eligibility cards.
“We expect this acquisition to enable us to enter the growing identity management and credentialing integration business with a wide range of established customers, strong personnel and a steady revenue stream,” commented Ming Hsieh, President and Chief Executive Officer of Cogent. “The MAXIMUS Security Solutions Division has built a profitable business serving government customers including the Department of Defense, the U.S. Department of Veteran Affairs, the FDIC and NASA. With more HSPD-12 cards produced for Federal customers than any other integrator, they have the potential to continue to grow by helping agencies comply with this directive. The acquisition will add approximately forty employees to Cogent, all highly qualified and many with security clearances, and we welcome them to the company.”
Richard Montoni, Chief Executive Officer of MAXIMUS, commented, “This divestment is consistent with our strategy of focusing more exclusively on our core government health and human services offerings. SSD has been a strong operational and financial performer for MAXIMUS with exceptional personnel and industry-leading capabilities. Under Cogent’s stewardship, we are confident that the business will reach its full potential.”
Hsieh continued, “Our primary focus remains on diversifying our revenue stream through internal development, most notably in biometric physical and logical access control products and by leveraging our technology for civil and commercial applications.
