MAXIMUS Agrees To Acquire Acentia For $300 Mln Cash - Quick Facts

(RTTNews) - MAXIMUS (MMS), an operator of government health and human services programs, said it has signed a definitive agreement to acquire Acentia, a provider of technology and management solutions to federal government civilian and health agencies in the U.S. It is a portfolio company of the Snow Phipps Group, LLC. The all-cash transaction is valued at about $300 million.

Acentia had approximately $210 million in pro forma revenue for the year ended December 31, 2014. MAXIMUS expects Acentia to contribute around $110 million in revenue for the remainder of the company's fiscal 2015, which ends on September 30, 2015.

MAXIMUS expects the transaction to be slightly accretive on a U.S. GAAP basis in fiscal year 2015, excluding related transaction and restructuring costs.

The acquisition expands the company's U.S. federal services business through additional contract vehicles and access to federal government agencies that are core to the MAXIMUS business model. The deal is expected to close during the company's fiscal 2015 third quarter.

Acentia provides systems modernization, software development, program management, and other information technology services and solutions to U.S. federal government civilian and health agencies.

These agencies include the United States Department of Health and Human Services, Centers for Disease Control and Prevention, Food and Drug Administration, Internal Revenue Service, Securities and Exchange Commission, Defense Health Agency and the Departments of Commerce, Agriculture and Labor. Acentia has approximately 1,000 employees across the U.S.

MAXIMUS plans to finance the transaction with existing cash and an amended line of credit agreement that provides for up to $400 million through 2020.