Government technology contractor Maximus is spending $300 million to buy fellow contractor Acentia, expanding its business footprint into federal healthcare information technology services and software support.
“The Acentia acquisition provides MAXIMUS with an additional growth platform, which is an important step in our long-term strategy to continue to grow our U.S. federal business and drive long-term shareholder value,” CEO Richard Montoni said in a news release announcing the deal.
Maximus, among other services, has helped provide customer help-lines for five state-based exchanges. The company also offers claims-processing services to state governments for Medicaid, Medicare and the Children's Health Insurance Program.
Acentia, which has 1,000 employees, is known for providing IT and software services to federal agencies including, in the healthcare space, the U.S. Department of Health and Human Services, the Centers for Disease Control and Prevention, the Food and Drug Administration and the Defense Health Agency.
Acentia had been owned by the Snow Phipps Group, a private equity firm.
The transaction is all-cash and expected to close during Maximus' third quarter, which ends June 30. Maximus expects the acquisition to add $110 million in revenue for the remainder of its 2015 fiscal year. Acentia recorded roughly $210 million in pro forma revenue for its year ended Dec. 31, 2014.
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