MAXIMUS Completes Sale of Non-Core Businesses
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RESTON, Va.--(Business Wire)-- MAXIMUS (NYSE:MMS), a leading provider of government services, announced today that it has completed its previously announced sale of its Justice Solutions, Education Systems, and Asset Solutions businesses to Toronto-based Constellation Software, Inc. (TSX:CSU). Total consideration for the asset purchase transaction was $40 million, including $35 million in cash paid at closing and a $5 million holdback for one year, subject to a purchase price adjustment and any claims based on representations and warranties. The ERP division, formerly part of the Systems Segment, has been incorporated into the Consulting Segment, and the three divested Systems businesses will be reported as discontinued operations. The Company will report financial results for its remaining Operations and Consulting Segments as continuing operations. Richard Montoni, Chief Executive Officer of MAXIMUS, stated, "We are pleased to complete the divestment of these businesses. We look forward to our planned future growth with our new concentrated portfolio of businesses focused on our health and human services program administration and consulting offerings. Our core offerings range from Medicaid and SCHIP enrollment, to welfare-to-work, to program integrity, to services in special education, for example. We will build on this strengthened platform to drive future growth as the leading pure-play provider for the administration of government health and human services programs." MAXIMUS is one of America's leading government services companies devoted to providing program management, consulting and information technology services. The Company has more than 6,000 employees located in more than 220 offices in the United States, Canada and Australia. Additionally, MAXIMUS is included in the Russell 2000 Index and the S&P SmallCap 600 Index. Statements that are not historical facts, including statements about the Company's confidence and strategies and the Company's expectations about revenues, results of operations, profitability, future contracts, market opportunities, market demand or acceptance of the Company's products, are forward-looking statements that involve risks and uncertainties. These uncertainties could cause the Company's actual results to differ materially from those indicated by such forward-looking statements and include reliance on government clients; risks associated with government contracting; risks involved in managing government projects; legislative changes and political developments; opposition from government unions; challenges resulting from growth; adverse publicity; and legal, economic, and other risks detailed in Exhibit 99.1 of the Company's most recent Annual Report filed with the Securities and Exchange Commission, found on www.maximus.com. MAXIMUS Lisa Miles, 800-MAXIMUS x11637 Copyright Business Wire 2008