Maximus (NYSE: MMS) has agreed to purchase technology and management services contractor Acentia for $300 million in cash and expects to close the transaction in the third quarter of Maximus’ 2015 fiscal year.
Maximus said Monday it plans to fund the transaction withÂ existing cash and an amended line of credit agreement to cover up toÂ $400 million through 2020 and expects the deal to slightly increase its earnings per share in fiscal year 2015.
Falls Church, Va.-based Acentia recorded approximatelyÂ $210 million in revenue during calendar year 2014Â andÂ has approximately 1, 000 employees in the U.S. that provideÂ systems modernization, software development, program management and other information technology services to civilian and health agencies.
The company works with agencies such as the departments of Agriculture, Commerce, Health and Human Services and Labor; Centers for Disease Control and Prevention; Defense Health Agency; Food and Drug Administration; Internal Revenue Service; and the Securities and Exchange Commission.
âAcentia introduces new contract vehicles and capabilities that complement our existing business process management offerings and capabilities for government markets, ” said Richard Montoni, Maximus CEO.
âThe Acentia acquisition provides MAXIMUS with an additional growth platform, which is an important step in our long-term strategy to continue to grow our U.S. federal business and drive long-term shareholder value, ” added Montoni, an inductee into Executive Mosaic’s Wash100 list forÂ 2015.
Maximus expects Acentia to contribute approximately $110 million in revenue for the rest of Maximus’ 2015 fiscal year ending Sept. 30, 2015.