MAXIMUS (MMS) Reports Acquisition of Federal Division from Attain LLC for $430M
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Maximus (NYSE: MMS) announced today that it completed the acquisition of the Federal division of Attain, LLC. The contracted purchase price of $430 million is subject to certain reductions and adjustments. Privately-owned Attain serves the U.S. Federal Government, with a strong reputation as an innovator with unparalleled technology services such as artificial intelligence and machine learning to support the mission-critical objectives of numerous federal agencies.
The acquisition is a natural fit and logical next step in furthering two core pillars of Maximus' long-term corporate strategy including accelerating digital transformation and the ongoing expansion into the U.S. federal market, which is a priority growth area. Attain Federal will also benefit from Maximus’ experience serving federal government clients, its desirable contract vehicles, as well as its leadership position in driving digital transformation for government.
“This acquisition is another milestone in our digital transformation and growth journey. We welcome the employees of Attain Federal, who are leaders in delivering robust technology solutions for government. Both Maximus and Attain share a common purpose to help deliver outcomes that matter to our government customers through a holistic, agile, secure, and customer-centric approach,” commented Bruce Caswell, President and Chief Executive Officer of Maximus. “Our M&A strategy remains keenly focused on enabling us to build long-term, sustainable, organic growth by continuing to build scale, enhance our clinical and digital capabilities, and extend into new areas. We believe this is an optimal path to enhancing long-term shareholder value.”
With the addition of Attain Federal's automation and digital expertise, Maximus expects to be able to further design, develop, and deliver even more innovative, impactful solutions to support the mission of its federal customers. The Company's digital transformation strategy seeks to offer new models for citizen engagement and enable its government partners to achieve their program modernization goals. Market-leading applications and development capabilities, cybersecurity, advanced analytics, and machine learning enhance the Company's competitive position, enable new solution offerings, and improve service delivery across our operations. The complimentary customer base of Maximus and Attain Federal offer meaningful opportunities for further expansion in the federal market.
Caswell continued, “We aim to deliver a unique citizen experience and use digital technologies and industry leading capabilities to deliver innovation to our federal customers and the citizens they serve. Attain Federal joining Maximus helps drive this aim forward even further.”
This business will be part of the U.S. Federal Services Segment and is expected to generate revenue of $120 million to $140 million for the remaining seven months of fiscal 2021. Subject to finalization of the valuation of intangible assets, the transaction is expected to be slightly dilutive for fiscal 2021, after consideration of one-time expenses, interest, and non-cash charges. The transaction is expected to be accretive in fiscal 2022.
Maximus will provide any resulting updates to guidance on the next earnings call which is planned for the first week of May. This is concurrent with the reporting of our results for the fiscal 2021 second quarter ending March 31, 2021.
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