{"id":499794,"date":"2021-06-01T06:33:01","date_gmt":"2021-06-01T10:33:01","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/maximus-completes-acquisition-of-veterans-evaluation-services-inc\/"},"modified":"2021-06-01T06:33:01","modified_gmt":"2021-06-01T10:33:01","slug":"maximus-completes-acquisition-of-veterans-evaluation-services-inc","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/maximus-completes-acquisition-of-veterans-evaluation-services-inc\/","title":{"rendered":"Maximus Completes Acquisition of Veterans Evaluation Services, Inc."},"content":{"rendered":"

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Maximus Completes Acquisition of Veterans Evaluation Services, Inc.<\/b><\/p>\n

RESTON, Va.–(BUSINESS WIRE<\/a>)–
\nMaximus (NYSE: MMS), a leading provider of government services worldwide, announced today that it completed the acquisition of privately held Veterans Evaluation Services, Inc. (VES). The agreement was previously announced on April 21, 2021. As the Company continues to execute and position for the future, this acquisition is a natural next step in progressing management\u2019s long-term strategy.\n<\/p>\n

\nVES is a premier provider of Medical Disability Examinations (MDEs) to the U.S. Department of Veterans Affairs (the VA). VES\u2019 expertise creates an opportunity for Maximus to grow our independent clinical assessments business at the Federal level, while meaningfully expanding our presence in the VA. As a result, the independent health and disability assessments and appeals portion of our business will comprise a larger share of our overall portfolio and pipeline, positioning Maximus to serve as the leading provider of health and disability assessments and appeals on behalf of government.\n<\/p>\n

\n\u201cThrough this combination, Maximus and VES will serve as a credible, established partner to the VA, add clinical capacity for clients, and offer innovation to benefit Veterans and the Veterans Benefits Administration,\u201d shared Bruce Caswell, President and Chief Executive Officer. \u201cI am proud to welcome our newest colleagues to Maximus. Together, we will support our nation\u2019s Veterans and help address the employment and health needs of service members and their families.\u201d\n<\/p>\n

\nThe purchase price was funded through new debt sources for the Company consisting of a $1.1 billion Term Loan A (TLA) due in 2026 and a $400 million Term Loan B (TLB) due in 2028. Pricing on the TLA is initially set at LIBOR+175 and the TLB is LIBOR+200, with a 0.5% Libor floor and an original issue discount of 99.5. The Company also refinanced its existing $400 million corporate credit facility and replaced it with a new $600 million facility available through 2026.\n<\/p>\n

Outlook <\/b><\/p>\n

\nThe Company provided estimated revenue and earnings impact of the VES acquisition on the May 6, 2021 earnings announcement. The estimates remain unchanged with revenue for the remaining four months of Maximus\u2019 fiscal year expected be range between $160M and $175M. There are one-time expenses estimated to be approximately $13 million, interest expense tied to the Term Loan borrowings and amortization expense related to the acquired intangible assets. The VES acquisition is expected to be slightly dilutive to earnings per share for the remainder of fiscal 2021 and to be accretive in future periods.\n<\/p>\n

About Maximus<\/b><\/p>\n

\nSince 1975, Maximus has operated under its founding mission of Helping Government Serve the People<\/i>\u00ae<\/sup>, enabling citizens around the globe to successfully engage with their governments at all levels and across a variety of health and human services programs. Maximus delivers innovative business process management and technology solutions that contribute to improved outcomes for citizens and higher levels of productivity, accuracy, accountability, and efficiency of government-sponsored programs. With more than 34,000 employees worldwide, Maximus is a proud partner to government agencies in the United States, Australia, Canada, Italy, Saudi Arabia, Singapore, South Korea, Sweden, and the United Kingdom. For more information, visit maximus.com<\/a>.\n<\/p>\n

Forward-Looking Statements<\/b><\/p>\n

\nStatements that are not historical facts, including statements about the Company\u2019s confidence and strategies, and the Company\u2019s expectations about revenues, results of operations, profitability, future contracts, market opportunities, market demand, or acceptance of the Company\u2019s products are forward-looking statements that involve risks and uncertainties including but not limited to:\n<\/p>\n