MAXIMUS To Acquire U.S. Federal Citizen Engagement Centers For $400 Mln

(RTTNews) - MAXIMUS (MMS) announced a definitive asset purchase agreement to acquire certain assets of General Dynamics Information Technology's large-scale, citizen-engagement centers in the U.S. Federal civilian market in a $400 million all cash transaction. The associated assets included in the asset purchase agreement had revenue of approximately $670 million for the twelve months ended June 2018.

MAXIMUS currently anticipates that the assets associated with the transaction will generate approximately 10.5 months of revenue for its fiscal 2019 in the range of $575 million to $600 million. The transaction is expected to be accretive by $0.10 to $0.15 of diluted earnings per share in fiscal 2019 after consideration of one-time expenses, interest, non-cash charges, and cost synergies.