DALLAS, May 26 /PRNewswire-FirstCall/ — Affiliated Computer Services,Inc., (NYSE: ACS), a premier provider of business process and informationtechnology outsourcing solutions, announced today that it has completed theacquisition of the human resources (HR) consulting and outsourcing businessesof Mellon Financial Corporation. The final purchase price of the businessesof $405 million was reduced to take into consideration sluggish HR consultingrevenues. The company reiterates the previously discussed anticipated resultsfrom this transaction:
-- The transaction and related costs will be initially funded from ACS'
existing $1.5 billion credit facility.
-- For fiscal year 2006, ACS expects net accretion from this transaction
of $0.04 to $0.06 per diluted share. This impact was contemplated in
guidance provided for fiscal year 2006 in ACS' third-quarter earnings
release dated April 21, 2005.
-- For fiscal year 2007, ACS expects accretion from this transaction of
$0.20 to $0.24 per diluted share. The projected increase in accretion
from fiscal year 2006 is due to the cessation of one-time integration
and migration costs, as well as the full year impact of anticipated
“The finalization of this acquisition makes ACS a major contender in theend-to-end HR services marketplace,” said Jeff Rich, ACS Chief ExecutiveOfficer. “It also further solidifies our position as a leading worldwideprovider of business process outsourcing services.”
ACS, a FORTUNE 500 company with more than 50,000 people supporting clientoperations in nearly 100 countries, provides business process and informationtechnology outsourcing solutions to world-class commercial and governmentclients. The Company’s Class A common stock trades on the New York StockExchange under the symbol “ACS.” ACS makes technology work. Visit ACS on theInternet at www.acs-inc.com.
All statements in this news release that are not based on historical factare “forward-looking statements” within the meaning of the Private SecuritiesLitigation Reform Act of 1995 and the provisions of Section 27A of theSecurities Act of 1933, as amended, and Section 21E of the Securities ExchangeAct of 1934, as amended (which Sections were adopted as part of the PrivateSecurities Litigation Reform Act of 1995). While management has based anyforward-looking statements contained herein on its current expectations, theinformation on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future eventsand are subject to a number of risks, uncertainties, and other factors, manyof which are outside of our control, which could cause actual results tomaterially differ from such statements. Such risks, uncertainties, and otherfactors include, but are not necessarily limited to, those set forth under thecaption “Risks Related to our Business” in the Company’s most recent Form 10-Q. In addition, we operate in a highly competitive and rapidly changingenvironment, and new risks may arise. Accordingly, investors should not placeany reliance on forward-looking statements as a prediction of actual results.We disclaim any intention to, and undertake no obligation to, update or reviseany forward-looking statement, whether as a result of new information, futureevent or otherwise.
SOURCE ACS, Inc.