DALLAS, April 17 /PRNewswire-FirstCall/ -- Affiliated Computer
Services, Inc. (NYSE: ACS) has signed an agreement to expand its global
public transit service capabilities with the acquisition of Orbital
Sciences Corporation's (NYSE: ORB) 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.
SOURCE Affiliated Computer Services, Inc.
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Related links:
http://www.acs-inc.com
CONTACT:
Investor Relations, Jon Puckett, Vice
President, Investor Relations, +1-214-841-8281,
jon.puckett@acs-inc.com, or Media, Andy Wilson, Director,
Corporate Communications, +1-214-841-8004,
andy.wilson@acs-inc.com, both of Affiliated Computer Services,
Inc.
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