MAXIMUS (NYSE:MMS), a leading provider of government services, announced
today that it has completed its previously announced sale of its Justice
Solutions, Education Systems, and Asset Solutions businesses to
Toronto-based Constellation Software, Inc. (TSX:CSU). Total
consideration for the asset purchase transaction was $40 million,
including $35 million in cash paid at closing and a $5 million holdback
for one year, subject to a purchase price adjustment and any claims
based on representations and warranties.
The ERP division, formerly part of the Systems Segment, has been
incorporated into the Consulting Segment, and the three divested Systems
businesses will be reported as discontinued operations. The Company will
report financial results for its remaining Operations and Consulting
Segments as continuing operations.
Richard Montoni, Chief Executive Officer of MAXIMUS, stated, “We
are pleased to complete the divestment of these businesses. We look
forward to our planned future growth with our new concentrated portfolio
of businesses focused on our health and human services program
administration and consulting offerings. Our core offerings range from
Medicaid and SCHIP enrollment, to welfare-to-work, to program integrity,
to services in special education, for example. We will build on this
strengthened platform to drive future growth as the leading pure-play
provider for the administration of government health and human services
programs.”
MAXIMUS is one of America's leading government services companies
devoted to providing program management, consulting and information
technology services. The Company has more than 6,000 employees located
in more than 220 offices in the United States, Canada and Australia.
Additionally, MAXIMUS is included in the Russell 2000 Index and the S&P
SmallCap 600 Index.
Statements that are not historical facts, including statements about the
Company's confidence and strategies and the Company's expectations about
revenues, results of operations, profitability, future contracts, market
opportunities, market demand or acceptance of the Company's products,
are forward-looking statements that involve risks and uncertainties.
These uncertainties could cause the Company's actual results to differ
materially from those indicated by such forward-looking statements and
include reliance on government clients; risks associated with government
contracting; risks involved in managing government projects; legislative
changes and political developments; opposition from government unions;
challenges resulting from growth; adverse publicity; and legal,
economic, and other risks detailed in Exhibit 99.1 of the Company's most
recent Annual Report filed with the Securities and Exchange Commission,
found on www.maximus.com.
MAXIMUS
Lisa Miles, 800-MAXIMUS x11637
