Apr 27, 2007 (11:04 AM EDT)
ACS Acquires Welfare Enrollment Software
Read the Original Article at InformationWeek
Outsourcer Affiliated Computer Services said Friday that it has completed the acquisition of a line of health and welfare software products from Albion, a unit of India-based Scandent Group.
Under the $25.5 million deal, ACS gains control of Albion's Vantage product line -- software that helps state officials determine citizen eligibility for health care and welfare programs.
ACS said it financed the acquisition through cash and borrowing. Vantage produced revenue of $25 million for Albion over the past 12 months, ACS said. About 170 Albion employees will transfer to ACS as part of the sale.
ACS said it will use the acquired software as part of a service offering that helps state and local governments move from health and welfare management systems running on legacy computers to Web-based systems.
ACS itself remains on the block. Earlier this week, founder and chairman Darwin Deason, along with private equity firm Cerberus Capital Management, submitted an enhanced bid to buy the company for $62 per share.
Last month, Deason and Cerberus floated an offer buy ACS for $59.25 per share, or $5.9 billion in total. The revised bid now values the company at $6.1 billion.