DALLAS, February 14 /PRNewswire/ --
Affiliated Computer Services, Inc. (NYSE: ACS) today announced an agreement to acquire sds business services GmbH, a Germany-based provider of data center, infrastructure services, and application-related solutions from Waterland Private Equity Investments (Waterland). The acquisition is expected to close in March 2008 following regulatory approval. ACS will pay approximately US$67 million (euro 46 million), including the assumption of liabilities, to purchase sds. The transaction will be funded with a combination of existing cash on hand and borrowings under ACS' existing credit facility.
The addition of sds strengthens ACS' global information technology outsourcing (ITO) presence by providing IT operations and capabilities in Germany. The acquisition continues to strengthen the company's position as a leading provider of responsive, reliable, and flexible ITO services and solutions to the world market.
"This acquisition demonstrates ACS' commitment to growing our business in continental Europe while improving our ability to compete where multi-national capabilities are essential for success," said Derrell James, ACS senior managing director of IT Outsourcing. "With facilities and infrastructure in place in Mulheim an der Ruhr and a reputable list of clients, sds strengthens our global delivery model, enabling us to provide our European and international clients with multi-scope IT services on a global scale."
The European ITO market is approximately a euro 70 billion industry with an estimated compound annual growth rate of about 7 percent over the next two years. ACS recently completed the acquisition of Syan Holdings Limited, a U.K.-based provider of ITO services and one of the United Kingdom's largest IBM Business Partners, for approximately US$60 million (pounds Sterling 30.5 million).
Founded in 1969, sds specializes in fully outsourced data center and infrastructure services, including application hosting and maintenance, system design and integration, IT consulting, and IT lifecycle management. Additionally, it has broad expertise in SAP consulting and integration services, as well as customized software development. Over time, ACS will integrate its full suite of ITO service offerings into the sds portfolio for delivery to its global clientele.
Waterland acquired sds in 2005 from Stinnes AG and turned the company into an independent provider of IT services. "After the successful transformation from a former Stinnes Group IT provider to an independent player, proactively marketing its services to new customers, the joining of forces between sds and ACS will offer the company new opportunities," said Joerg Dreisow, principal of Waterland.
"The combination of sds and ACS strengthens our ability to pursue global and European business and emphasizes our commitment to developing efficient and innovative solutions that meet our clients' unique needs," said Albrecht Held, sds managing director and chief executive officer. "Our Germany-based global clients will be backed by a FORTUNE 500 company with global delivery capabilities, and we will be able to deliver an expanded suite of ITO and BPO services to our global customers."
For the twelve-month period ending December 31, 2007, sds had revenues of approximately US$40 million. The business will continue to be managed by sds' existing executive team, adding approximately 160 employees to ACS in Europe.
Waterland Private Equity Investments is an independent private equity firm operating in The Netherlands, Belgium, and Germany, with euro 620 million in funds under management. Waterland focuses on consolidation strategies, investing in fragmented growth markets in the services sector that are undergoing transformation as a consequence of one or more of the following trends: outsourcing & efficiency, aging population, and leisure and luxury. Waterland's portfolio includes a.o. Fa-Med (market leader in medical A/R management in The Netherlands), Senior Living Group (market leader for private retirement and nursing homes in Belgium), and Loewen Play (games arcade operator in Germany). Waterland operates from offices in Bussum (The Netherlands), Antwerp (Belgium), and Dusseldorf (Germany).
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.
Web site: http://www.acs-inc.com
Investor Relations, Jon Puckett, Vice President, +1-214-841-8281, jon.puckett@acs-inc.com, or Media, Tom Clary, Director of Corporate Communications, +1-214-841-8110, tom.clary@acs-inc.com, both of Affiliated Computer Services, Inc.
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