Maximus’ (NYSE: MMS) move to purchase Veterans Evaluation Services, a Houston-based facilitator of medical disability compensation and pension exams, for $1.4 billion aims to add business process outsourcing services at the federal level as a complement to state-level independent clinical assessment work, Maximus President and CEO Bruce Caswell told investors Wednesday.
He said the deal will help build out Maximus’ portfolio of appeals and medical review services as the company pursues organic growth opportunities across the government sector.
“It gives us the capacity to try to find the right clinician in the right place with the right specialty at the right time for the type of work that needs to be done,” Caswell, a three-time Wash100 Award recipient, was quoted as saying by the Washington Business Journal.
Maximus expects to close the transaction during its fiscal year 2021 third quarter and forecasts VES revenue of between $160 million and $175 million for the last four months of FY 2021.
The Reston, Virginia-based contractor attributed 15 percent, or $535 million, of its overall FY 2020 revenue to assessments and appeals work and estimated the pending VES acquisition will increase the figure to account for 25 percent of pro-forma revenue.
VES, which will operate under Maximus’ federal services segment upon completion of the deal, has helped the Department of Veterans Affairs manage disability medical exams for military personnel living in the U.S. and overseas.