MAXIMUS Divests Corrections Services Unit; To Focus on other Government Outsourcing

Published on:
8 December 2006 at 06:33 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00002318-maximus-divests-corrections-services-unit/

MAXIMUS, a leading provider of government services announced today that is has sold its Corrections Services business to Providence Service Corporation. Under terms of the agreement, Providence will acquire the business for $3.0 million in cash, plus the assumption of certain liabilities.

Richard Montoni, Chief Executive Officer, stated, “This is in-line with our long-term strategy of divesting certain businesses that no longer complement our growth plan. We will continue to invest in and focus on those business lines where we can grow and facilitate margin expansion. We do not expect the divesture will result in a material gain or loss from the sale, but that it should be slightly accretive to future periods. Providence is a well-respected provider of community based social services and this business fits well with their service offerings.”

MAXIMUS Divests Corrections Services Unit; To Focus on other Government Outsourcing

Unknown Author

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