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ACS to Acquire Orbital Sciences' Transportation Management Systems Business to Broaden Transit Service Capabilities
Apr 17, 2008 (06:04 AM EDT)
DALLAS, April 17 /PRNewswire-FirstCall/ -- Affiliated Computer Services, Inc. has signed an agreement to expand its global public transit service capabilities with the acquisition of Orbital Sciences Corporation's Transportation Management Systems (TMS) business for $42.5 million. The closing of the transaction is subject to customary conditions.
TMS is the nation's leading provider of Global Positioning System (GPS)-based fleet management systems, with trailing twelve months revenue of approximately $50 million as of March 2008. TMS provides ACS leadership in the fastest-growing segment of the transit market and makes ACS the only company capable of providing both fare collection and fleet management system capabilities.
The systems developed by TMS combine satellite navigation and wireless communications. They enable transit control centers to better manage and dispatch public transit and highway service vehicles and commuter light rail systems. The technology is used by more than 60 clients, exceeding 27,500 vehicles, or more than 30 percent of the U.S. and Canadian fleet. TMS' clients include some of the nation's largest fleet management systems, such as Los Angeles, Chicago, and Washington, D.C.
"The TMS acquisition strengthens ACS' end-to-end transportation services," said Michael Huerta, ACS executive vice president and group president, Transportation Solutions. "TMS' reputation for improving operational efficiency, customer service, safety and security for their clients fits well with our culture of responsive and reliable service."
Federal, state and local funding for public transportation continues to increase, reflecting public demand. During the past decade, state transportation budgets rose 15 percent annually, while federal funding increased at 5 percent. Over the next several years an additional 16,000 public transit vehicles in North America are expected to be equipped with new GPS-based services.
"TMS' employees are excited about the opportunity of joining an industry-leading company with a strong emphasis on the transportation market," said David Kachemov, TMS vice president and general manager. "ACS will now be able to expand into vital markets such as school buses, public works vehicles, and the growing paratransit systems that provide critical services to people with disabilities. Additionally, ACS' international presence will enable the company to provide TMS' solutions globally."
ACS is the industry leader in providing systems and services to public transport agencies worldwide. ACS' Transportation Solutions business helps government agencies in more than 30 countries address their challenges through revenue collection and regulation compliance services.
ACS' transportation industry expertise includes: o Electronic toll collection: ACS is the nation's largest service provider, with $3 billion in toll revenue collected annually in programs such as E-ZPass(TM). o Public transport fare collection: ACS provides solutions for more than 1,000 fare collection systems worldwide, enabling 50 million passengers to use mass transit daily. o Parking: The company operates customized airport and urban parking systems, and performs parking violations processing, with 15 million citations processed annually. o Red light and speed photo enforcement: ACS serves 60 governmental jurisdictions in the U.S. and Canada, processing 2 million photo enforcement violations annually. o Shipping and logistics: ACS supports PrePass(R), a service that allows transponder-equipped trucks to bypass weigh stations.
The transaction will be funded with a combination of existing cash on hand and borrowings under ACS' existing credit facility.
ACS, a global FORTUNE 500 company with 62,000 people supporting client operations reaching more than 100 countries, provides business process outsourcing and information technology solutions to world-class commercial and government clients. The company's Class A common stock trades on the New York Stock Exchange under the symbol "ACS." Learn more about ACS at http://www.acs-inc.com .
The statements in this news release that do not directly relate to historical facts constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to numerous risks and uncertainties, many of which are outside the Company's control. As such, no assurance can be given that the actual events and results will not be materially different than the anticipated results described in the forward-looking statements. Factors could cause actual results to differ materially from such forward-looking statements. For a description of these factors, see the company's prior filings with the Securities and Exchange Commission, including our most recent filing. ACS disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future event, or otherwise.
CONTACT: Investor Relations, Jon Puckett, Vice President, Investor email@example.comRelations, +1-214-841-8281, , or Media, Andy Wilson,Director, Corporate Communications, +1-214-841-8004,, both of Affiliated Computer Services, Inc.
Web site: http://www.acs-inc.com/