Affiliated Computer Services Inc. (ACS) provides information technology services as well as business process outsourcing solutions to businesses, government agencies, and non-profit organizations. ACS is based in Dallas, Texas and the current CEO is Lynn Blodgett. ACS is ranked at number 341 on the 2010 Fortune 500 list.[3] Founded in 1988, by Darwin Deason, ACS now operates in nearly 100 countries, generating over $6 billion annually. As of September 2009, ACS employs approximately 74,000 people.[4]
On September 28, 2009, Xerox Corporation announced plans to acquire ACS in a $6.4 billion transaction.[5] The deal closed on February 8, 2010.
ACSM-AGAM SpA is an Italy-based company engaged in the public utility services. It operates in the distribution and sale of gas, distribution and sale of water, in the management of the sewerage system, production of Electric Energy through two cogeneration plants and a third one being built, the management of garbage used to generate Electric Energy. The company operates through is subsidiaries among which there Enerxenia SpA, Canturina Servizi Vendita Srl, Serenissima Energia Srl, Serenissima Gas SpA, Enercalor Srl, Comocalor SpA, Agam Vendite Srl, Villa Santa Energia Srl, Ponte Foreste Srl and others more. It operates in Como and other towns of Lombardia, Veneto and Friuli Venezia Giulia.
During 2000, ACS established a new division for BPO, gained new government clients, continued to make acquisitions, and divested its ATM business. The new BPO division consolidated a variety of outsourcing services, such as processing insurance claims, a task that was accomplished in part by 3,000 employees working in Guatemala and Mexico. ACS estimated that BPO would account for $950 million in fiscal 2000, or about half of the company's revenue. The BPO division also signed a $56 million contract with Ginnie Mae to support the government's mortgage-backed securities program over a three-year period.
Acquisitions completed in fiscal 2000 included Consultec LLC, a provider of administrative support services to the healthcare industry, for $105 million. The acquisition enabled ACS to compete better with other service providers for state government contracts to help them manage and administer their Medicaid and welfare programs and combat fraud and abuse. ACS also acquired Birch & Davis Holdings, Inc. of Silver Spring, Maryland, for $75 million. Birch & Davis specialized in providing healthcare management and consulting services, especially to state governments. The acquisition added more than 600 employees and strengthened ACS's position in the government healthcare services market, bolstering its ranking as a top systems integrator in the government information technology (IT) field. As a result of these acquisitions, ACS subsequently formed a new subsidiary, ACS Healthcare Solutions Inc.
At the end of fiscal 2000 ACS completed the acquisition of Intellisource Group Inc. of Vienna, Virginia. ACS gained 680 employees in the transaction and acquired a customer base that included the NASA Goddard Space Flight Center, the Federal Aviation Administration, the U.S. Air Force and Coast Guard, and the cities of Newark, New Jersey, and Philadelphia, Pennsylvania. ACS also sold off its ATM unit at the end of fiscal 2000, saying that it could no longer compete in that market. The unit was acquired by Genpass Inc., a subsidiary of the Chicago-based private equity firm of GTCR Golder Rauner, for $180 million.
Since its inception in 1988, ACS had completed more than 50 acquisitions through the end of fiscal 2000. To help ACS pursue acquisitions of IT and business process outsourcing companies, it hired merger and acquisition specialist Bill Deckelman as general counsel and executive vice-president in March 2000. For fiscal 2000 ACS reported revenue of $1.96 billion and net income of $109.3 million.
During fiscal 2001 ACS obtained a $450 million revolving credit facility from a consortium of financial institutions that included Wells Fargo Bank, Bank One, SunTrust Bank, and Bank of Tokyo-Mitsubishi. In June 2001 ACS agreed to acquire Global Government Solutions (GGS) from Systems & Computer Technology Corporation for $85 million in cash. GGS was based in Lexington, Kentucky, and provided IT solutions to state and local governments. The acquisition enhanced ACS's powerful market position in the government sector and made it the largest provider of local government IT solutions. For fiscal 2001 ACS reported revenue of $2.06 billion and net income of $134.3 million.
ACS began fiscal 2002 with an agreement with Lockheed Martin Corporation to purchase its IMS Corporation subsidiary for $825 million in cash. IMS specialized in providing a range of processing services to state and local governments, including child support payments collection, operation of welfare-to-work programs, and processing traffic violations. With 250 offices located in 44 states and Canada and 4,800 employees, IMS had estimated annual revenue of $700 million. Also in July 2001, ACS obtained a major defense contract worth up to $346 million over ten years from the Defense Finance and Accounting Service to provide data processing and payroll services for military retirees and annuitants. Another major acquisition was completed in June 2002, when ACS purchased AFSA Data Corporation for $410 million. AFSA had more than 3,500 employees and was the largest education services company in the United States, servicing 8.1 million student loans worth $85 billion. By the end of fiscal 2002 ACS was hiring new employees at the rate of 500 a month. For the year ACS reported revenue of $3.06 billion and net income of $229.6 million.
During fiscal 2003 ACS adopted an annual goal of increasing cash flow by 10 percent through internal growth and 10 percent through acquisitions. In September 2002 the company obtained an $875 million unsecured line of credit to consolidate its existing debt. It planned to seek out only one to three significantly large contracts a year. In December 2002 it obtained a ten-year, $650 million contract with Motorola Inc., to handle its human resources functions, including payroll and benefits administration. As part of the deal, ACS acquired parts of Motorola's human resources division, including 600 employees in 27 countries. An even larger contract, worth about $100 million a year, was signed in January 2003 with Texas's Medicaid system.
ACS became a member of the Fortune 500 in 2003, ranked 488th. For fiscal 2003 the company reported revenue of $3.79 billion and net income of $306.8 million. About two-thirds of the company's revenue came from BPO services. One key to ACS's success was its use of cheaper labor available outside the United States. The company opened its first foreign facility in 1997 in Mexico. Approximately 25 to 30 percent of the company's workforce of 40,000 employees worked outside the United States in 2003, including 5,000 employees in Mexico, 2,000 in Guatemala, and 1,000 in Ghana, among other locations.
Perhaps signaling a new direction for ACS, the company agreed in August 2003 to sell the majority of its federal government business to Lockheed Martin Corporation. ACS would retain its $150 million-a-year contract for loan servicing services with the U.S. Department of Education, which it has held since 1994. Some ACS operations would also continue to serve as subcontractors on portions of the transferred business. The deal, which was expected to close in 2004, called for Lockheed Martin to pay $658 million for ACS's government solutions business, while ACS would pay $107 million for Lockheed Martin's commercial IT outsourcing business. In addition to netting $551 million in cash, ACS would gain contracts worth about $240 million annually from new customers such as Nike Inc. and Simon & Schuster Inc., and existing customers such as General Motors Corporation and Goodyear Tire & Rubber Co. A spokesperson for ACS said the company decided to divest its government business because it did not have the resources to compete for the extremely large contracts common in the federal market. On the other hand, the company also felt it was too large to compete for some of the niche business. Following the deal ACS planned to focus on providing high-margin business process outsourcing (BPO) services to commercial clients.
OVERALL
Beta: 0.68
Market Cap (Mil.): €90.41
Shares Outstanding (Mil.): 76.62
Annual Dividend: 0.06
Yield (%): 5.08
FINANCIALS
ACAG.MI Industry Sector
P/E (TTM): 10.42 16.94 15.82
EPS (TTM): 187.27 -- --
ROI: 4.61 1.57 1.03
ROE: 6.12 2.86 2.14
Statistics:
Public Company
Incorporated: 1988 as Affiliated Computer Systems, Inc.
Employees: 40,000
Sales: $3.78 billion (2003)
Stock Exchanges: New York
Ticker Symbol: ACS
NAIC: 514210 Data Processing Services; 522320 Financial Transaction Processing, Reserve, and Clearinghouse Activities; 561499 All Other Business Support Services
Key Dates:
1988: The company is founded in Dallas, Texas, as Affiliated Computer Systems, Inc.
1994: The company goes public as Affiliated Computer Services, Inc. (ACS), with an initial public offering on the NASDAQ.
1995: ACS reorganizes, plans to diversify, and leaves data processing for banks and financial institutions.
1996: ACS has more than 5,000 ATMs in its network.
1997: ACS moves its stock listing from the NASDAQ to the New York Stock Exchange and acquires Computer Data Systems for $350 million.
1998: The company acquires BRC Holdings, Inc. for $261 million.
1999: Jeffrey Rich replaces founder Darwin Deason as CEO.
2000: ACS sells its ATM unit for $180 million.
2001: ACS acquires IMS Corporation from Lockheed Martin Corporation for $825 million.
2003: ACS joins Fortune 500, ranked 488th; ACS announces a plan to sell its government solutions units to Lockheed Martin in exchange for a commercial business unit.
Name Age Since Current Position
D'Alessandro, Umberto 68 2009 Non Executive Independent Chairman of the Board
Grigesi, Enrico 60 2010 Chief Executive Officer, Director
Colombo, Roberto 53 2009 Non-Executive Independent Vice Chairman of the Board
Colicchio, Nicola Head of Corporate and Legal Affairs
Pamela, Boggiani Director of Investor Relations
Castelli, Gianni 60 2009 Non-Executive Director
Lanzara, Paolo 42 2009 Independent Director
Cobianchi, Claudio 63 2009 Independent Director
Terraneo, Federico 39 2009 Independent Director
Crippa, Antonio Maria 45 2009 Independent Director
Sala, Paola 45 2009 Independent Director
Masocco, Giorgio 53 2009 Independent Director
Address:
2828 North Haskell
Building 1
Dallas, Texas 75204
U.S.A.
On September 28, 2009, Xerox Corporation announced plans to acquire ACS in a $6.4 billion transaction.[5] The deal closed on February 8, 2010.
ACSM-AGAM SpA is an Italy-based company engaged in the public utility services. It operates in the distribution and sale of gas, distribution and sale of water, in the management of the sewerage system, production of Electric Energy through two cogeneration plants and a third one being built, the management of garbage used to generate Electric Energy. The company operates through is subsidiaries among which there Enerxenia SpA, Canturina Servizi Vendita Srl, Serenissima Energia Srl, Serenissima Gas SpA, Enercalor Srl, Comocalor SpA, Agam Vendite Srl, Villa Santa Energia Srl, Ponte Foreste Srl and others more. It operates in Como and other towns of Lombardia, Veneto and Friuli Venezia Giulia.
During 2000, ACS established a new division for BPO, gained new government clients, continued to make acquisitions, and divested its ATM business. The new BPO division consolidated a variety of outsourcing services, such as processing insurance claims, a task that was accomplished in part by 3,000 employees working in Guatemala and Mexico. ACS estimated that BPO would account for $950 million in fiscal 2000, or about half of the company's revenue. The BPO division also signed a $56 million contract with Ginnie Mae to support the government's mortgage-backed securities program over a three-year period.
Acquisitions completed in fiscal 2000 included Consultec LLC, a provider of administrative support services to the healthcare industry, for $105 million. The acquisition enabled ACS to compete better with other service providers for state government contracts to help them manage and administer their Medicaid and welfare programs and combat fraud and abuse. ACS also acquired Birch & Davis Holdings, Inc. of Silver Spring, Maryland, for $75 million. Birch & Davis specialized in providing healthcare management and consulting services, especially to state governments. The acquisition added more than 600 employees and strengthened ACS's position in the government healthcare services market, bolstering its ranking as a top systems integrator in the government information technology (IT) field. As a result of these acquisitions, ACS subsequently formed a new subsidiary, ACS Healthcare Solutions Inc.
At the end of fiscal 2000 ACS completed the acquisition of Intellisource Group Inc. of Vienna, Virginia. ACS gained 680 employees in the transaction and acquired a customer base that included the NASA Goddard Space Flight Center, the Federal Aviation Administration, the U.S. Air Force and Coast Guard, and the cities of Newark, New Jersey, and Philadelphia, Pennsylvania. ACS also sold off its ATM unit at the end of fiscal 2000, saying that it could no longer compete in that market. The unit was acquired by Genpass Inc., a subsidiary of the Chicago-based private equity firm of GTCR Golder Rauner, for $180 million.
Since its inception in 1988, ACS had completed more than 50 acquisitions through the end of fiscal 2000. To help ACS pursue acquisitions of IT and business process outsourcing companies, it hired merger and acquisition specialist Bill Deckelman as general counsel and executive vice-president in March 2000. For fiscal 2000 ACS reported revenue of $1.96 billion and net income of $109.3 million.
During fiscal 2001 ACS obtained a $450 million revolving credit facility from a consortium of financial institutions that included Wells Fargo Bank, Bank One, SunTrust Bank, and Bank of Tokyo-Mitsubishi. In June 2001 ACS agreed to acquire Global Government Solutions (GGS) from Systems & Computer Technology Corporation for $85 million in cash. GGS was based in Lexington, Kentucky, and provided IT solutions to state and local governments. The acquisition enhanced ACS's powerful market position in the government sector and made it the largest provider of local government IT solutions. For fiscal 2001 ACS reported revenue of $2.06 billion and net income of $134.3 million.
ACS began fiscal 2002 with an agreement with Lockheed Martin Corporation to purchase its IMS Corporation subsidiary for $825 million in cash. IMS specialized in providing a range of processing services to state and local governments, including child support payments collection, operation of welfare-to-work programs, and processing traffic violations. With 250 offices located in 44 states and Canada and 4,800 employees, IMS had estimated annual revenue of $700 million. Also in July 2001, ACS obtained a major defense contract worth up to $346 million over ten years from the Defense Finance and Accounting Service to provide data processing and payroll services for military retirees and annuitants. Another major acquisition was completed in June 2002, when ACS purchased AFSA Data Corporation for $410 million. AFSA had more than 3,500 employees and was the largest education services company in the United States, servicing 8.1 million student loans worth $85 billion. By the end of fiscal 2002 ACS was hiring new employees at the rate of 500 a month. For the year ACS reported revenue of $3.06 billion and net income of $229.6 million.
During fiscal 2003 ACS adopted an annual goal of increasing cash flow by 10 percent through internal growth and 10 percent through acquisitions. In September 2002 the company obtained an $875 million unsecured line of credit to consolidate its existing debt. It planned to seek out only one to three significantly large contracts a year. In December 2002 it obtained a ten-year, $650 million contract with Motorola Inc., to handle its human resources functions, including payroll and benefits administration. As part of the deal, ACS acquired parts of Motorola's human resources division, including 600 employees in 27 countries. An even larger contract, worth about $100 million a year, was signed in January 2003 with Texas's Medicaid system.
ACS became a member of the Fortune 500 in 2003, ranked 488th. For fiscal 2003 the company reported revenue of $3.79 billion and net income of $306.8 million. About two-thirds of the company's revenue came from BPO services. One key to ACS's success was its use of cheaper labor available outside the United States. The company opened its first foreign facility in 1997 in Mexico. Approximately 25 to 30 percent of the company's workforce of 40,000 employees worked outside the United States in 2003, including 5,000 employees in Mexico, 2,000 in Guatemala, and 1,000 in Ghana, among other locations.
Perhaps signaling a new direction for ACS, the company agreed in August 2003 to sell the majority of its federal government business to Lockheed Martin Corporation. ACS would retain its $150 million-a-year contract for loan servicing services with the U.S. Department of Education, which it has held since 1994. Some ACS operations would also continue to serve as subcontractors on portions of the transferred business. The deal, which was expected to close in 2004, called for Lockheed Martin to pay $658 million for ACS's government solutions business, while ACS would pay $107 million for Lockheed Martin's commercial IT outsourcing business. In addition to netting $551 million in cash, ACS would gain contracts worth about $240 million annually from new customers such as Nike Inc. and Simon & Schuster Inc., and existing customers such as General Motors Corporation and Goodyear Tire & Rubber Co. A spokesperson for ACS said the company decided to divest its government business because it did not have the resources to compete for the extremely large contracts common in the federal market. On the other hand, the company also felt it was too large to compete for some of the niche business. Following the deal ACS planned to focus on providing high-margin business process outsourcing (BPO) services to commercial clients.
OVERALL
Beta: 0.68
Market Cap (Mil.): €90.41
Shares Outstanding (Mil.): 76.62
Annual Dividend: 0.06
Yield (%): 5.08
FINANCIALS
ACAG.MI Industry Sector
P/E (TTM): 10.42 16.94 15.82
EPS (TTM): 187.27 -- --
ROI: 4.61 1.57 1.03
ROE: 6.12 2.86 2.14
Statistics:
Public Company
Incorporated: 1988 as Affiliated Computer Systems, Inc.
Employees: 40,000
Sales: $3.78 billion (2003)
Stock Exchanges: New York
Ticker Symbol: ACS
NAIC: 514210 Data Processing Services; 522320 Financial Transaction Processing, Reserve, and Clearinghouse Activities; 561499 All Other Business Support Services
Key Dates:
1988: The company is founded in Dallas, Texas, as Affiliated Computer Systems, Inc.
1994: The company goes public as Affiliated Computer Services, Inc. (ACS), with an initial public offering on the NASDAQ.
1995: ACS reorganizes, plans to diversify, and leaves data processing for banks and financial institutions.
1996: ACS has more than 5,000 ATMs in its network.
1997: ACS moves its stock listing from the NASDAQ to the New York Stock Exchange and acquires Computer Data Systems for $350 million.
1998: The company acquires BRC Holdings, Inc. for $261 million.
1999: Jeffrey Rich replaces founder Darwin Deason as CEO.
2000: ACS sells its ATM unit for $180 million.
2001: ACS acquires IMS Corporation from Lockheed Martin Corporation for $825 million.
2003: ACS joins Fortune 500, ranked 488th; ACS announces a plan to sell its government solutions units to Lockheed Martin in exchange for a commercial business unit.
Name Age Since Current Position
D'Alessandro, Umberto 68 2009 Non Executive Independent Chairman of the Board
Grigesi, Enrico 60 2010 Chief Executive Officer, Director
Colombo, Roberto 53 2009 Non-Executive Independent Vice Chairman of the Board
Colicchio, Nicola Head of Corporate and Legal Affairs
Pamela, Boggiani Director of Investor Relations
Castelli, Gianni 60 2009 Non-Executive Director
Lanzara, Paolo 42 2009 Independent Director
Cobianchi, Claudio 63 2009 Independent Director
Terraneo, Federico 39 2009 Independent Director
Crippa, Antonio Maria 45 2009 Independent Director
Sala, Paola 45 2009 Independent Director
Masocco, Giorgio 53 2009 Independent Director
Address:
2828 North Haskell
Building 1
Dallas, Texas 75204
U.S.A.