ACS sale talks end
- By John Moore
- Jan 18, 2006
Talks about the sale of Affiliated Computer Services to a group of private-equity investors have ended, according to the outsourcing company.
ACS, based in Dallas, said it has been considering the possible sale of the company and a recapitalization proposal, to improve the company’s value for shareholders. This week, company leaders announced that they couldn't reach an agreement on either option.
Investors, including Texas Pacific Group and the Blackstone Group presented the talks about a sale to the company, according to published reports.
Earlier this month, ACS completed the sale of its welfare-to-workforce services line to Arbor Education &Training. ACS acquired the job placement services business in its 2001 purchase of Lockheed Martin’s IMS subsidiary. ACS deemed that operation to be no longer strategic.
ACS’ public-sector business focuses mainly on state and local government customers. ACS has Medicaid claims processing contracts with several states. The company also pursues human resources-related projects and transportation ticketing system projects.
ACS earlier this month announced a contract with Alaska for actuarial and consulting services for the state’s retirement and retiree medical plans. Also in January, the company won a $14 million contract to deploy a ticketing system for a transit authority in Houston.