Affiliated Computer Services
 | This article contains content that is written like an advertisement. (September 2009) |
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| Company type | Public (NYSE: ACS) |
|---|---|
| Industry | Information Technology Services |
| Founded | 1988 |
| Founder | Darwin Deason |
| Headquarters |  Dallas, TX, USA |
Area served | Worldwide |
Key people | Darwin Deason (Chairman of the Board) Lynn R. Blodgett (President), (CEO) & (Director) |
| Products | Service Provider, ITO/BPO Outsourcing |
| Revenue |  $ 6.160 billion (2008) |
| $ 645.08 million (2008) | |
| $ 329.01 million (2008) | |
| Total assets | $ 6.469 billion (2008) |
| Total equity | $ 2.308 billion (2008) |
Number of employees | 74,000 - Jan 2009 |
| Website | ACS-Inc.com |
Affiliated Computer Services (ACS)(NYSE: ACS) provides information technology services as well as business process outsourcing solutions to businesses, government agencies, and non-profit organizations. ACS is based in Dallas, Texas and the current CEO is Lynn Blodgett. ACS is ranked at number 401 on the 2008 Fortune 500 list. Founded in 1988, by Darwin Deason, ACS now operates in nearly 100 countries, generating over $6 billion annually. As of September 2009, ACS employs approximately 74,000 people.[1]
On September 28, 2009, Xerox Corporation announced plans to acquire ACS in a $6.4 billion transaction. The deal is expected to close in early 2010.
Fourth Quarter Fiscal Year 2009 Earnings
On August 6 ,2009, ACS announced its record fourth quarter fiscal year 2009 revenues of $1.70 billion, a 6% increase, excluding divestitures, compared to the prior year quarter. Internal revenue growth was 3%. Fourth quarter fiscal year 2009 adjusted non-generally accepted accounting principle ("GAAP") diluted earnings per share was $0.99, including costs of $1 million, or $0.01 per diluted share, related to Project Compete. Adjusted non-GAAP diluted earnings per share for the comparable prior year period was $0.95.
Fourth quarter new business signings were the second highest in the Company's history and totaled $271 million of annual recurring revenue with an estimated total contract value of $1.2 billion.
Total contract value of all signings, including new business signings, renewals and non-recurring revenue, was $2.2 billion for the fourth quarter of fiscal year 2009.
Operating cash flow for the fourth quarter of fiscal year 2009 was a record at $426 million, or 25% of revenues. Capital expenditures and additions to intangible assets increased to $100 million, or 6% of revenues. Free cash flow was $326 million, or 19% of revenues. The Company's cash balance was $731 million at June 30, 2009.
"Fiscal 2009 was a remarkable year for ACS as our business model demonstrated consistency and resiliency amidst a very difficult economic backdrop," said Lynn Blodgett, ACS president and chief executive officer. "We achieved record levels of revenue, profit, earnings per share and new business signings. I am proud of our employees for their dedication to ACS, appreciative of our clients for their trust and optimistic about our prospects for fiscal 2010." [2].
Company History
Affiliated Computer Services, Inc. (ACS) was founded by Darwin Deason in 1988. The foundation of ACS was built on Mr. Deason’s assembling a group of talented information technology professionals that shared a dedication to meeting client needs and exceeding client expectations. Initially created as a data services provider to the financial services industry, Mr. Deason led ACS’ steady and successful expansion into the communications, education, financial services, government, healthcare, insurance, manufacturing, retail, and travel and transportation industries.
ACS expanded beyond banking services when it signed a 10-year data processing outsourcing contract with Southland Corp. (7-Eleven). In 1995 ACS became a public company and divested bank data processing. By FY1996 ACS became the fourth largest commercial outsourcer in the U.S.
Today, ACS ranks #401 on the FORTUNE 500 list and employs about 74,000 people around the world who serve thousands of commercial and government clients.[3]
On September 28, 2009, Xerox Corporation announced plans to acquire ACS in a $6.4 billion transaction. The deal is expected to close in early 2010.[4]
Lines of Businesses
Government Solutions Group
ACS enables governments to improve operations to better serve their citizens. ACS provides flexible, reliable solutions wherever they’re needed—on highways and in hospitals, at the courthouse and the corner store, over the phone and on the Web. By working with ACS, government agencies can transform the way they serve individuals and their communities, now and in the future.
The American Recovery and Reinvestment Act signed by President Obama is the most sweeping financial legislation enacted in our nation’s history. The $787 billion stimulus package invests significantly in healthcare, transportation, and human services – areas where ACS’ expertise can be leveraged to help governments implement exciting new initiatives. ACS stands ready to help government customers respond to this rapidly changing environment and meet the challenges of transformation and economic recovery.
Medicaid
ACS provides a broad range of end-to-end healthcare administration solutions with deep subject matter expertise. In its 37 years of experience, ACS is a preferred MMIS (Medicaid Management Information Systems) provider, and has successfully developed, implemented and received Centers for Medicare & Medicaid Services Certification in 31 state Medicaid programs to date. This number continues to rise as does its experience in the healthcare sector.
ACS supports the full healthcare continuum beyond member enrollment and claims processing into the realm of Total Population Health Management and eHealth solutions.
ACS creates a custom solution that provides a unique mix of services, including business process transformation, systems development and implementation, program and policy consulting, analytic and clinical consulting services, customer care operations, health information exchange solutions, and a host of other services like claims processing and mailroom operations.
Enterprise Solutions & Services Group
ACS Enterprise Solutions & Services Group (ESS) serves thousands of clients around the world in practically every major industry and represents a significant portion of its growth potential.
ESS is organized by service offerings that include Commercial Education & Financial Services, Finance and Accounting (F&A) and Human Capital Management Solutions (HCMS).
With more than 45,000 employees in more than 400 locations worldwide, ESS maximizes ACS’ BPO and ITO capabilities and delivers competitive solutions to clients in markets such as communications, education, energy, financial services, government, healthcare, insurance, manufacturing, retail, and transportation and travel. [5]
Transportation Solutions Group
ACS' Transportation Solutions Group (TSG) offers a wide range of intelligent transportation services. Its electronic payment and toll collection services give motorists and transit users the ability to pay fees electronically without stopping. ACS also offers commercial trucking services that automate the weigh station process and give trucking companies the ability to bypass weigh stations. ACS’ motor vehicle services offer Departments of Motor Vehicles and commercial fleet owners the ability to improve processing of registrations, permits, licenses, and taxes. The transportation services also help a variety of cities manage their parking systems, implement and operate photo safety enforcement systems, and manage information and billing for emergency medical services.
ACS helps transportation system operators improve their productivity, situational awareness, and client satisfaction by delivering comprehensive, client-specific solutions based on leading-edge technologies. ACS’ efficient systems combine proven state-of-the-art technology with a wealth of experience, permanent innovation, and all-encompassing service.
Healthcare, Finance & Insurance Group
The Healthcare, Finance & Insurance Group (HFI) at ACS delivers expertise in high-volume transaction processing and customer care through a single operating group. Serving clients in most key industries, HFI has grown to represent a quarter of ACS’ revenues.
With approximately 24,000 employees in the division, 9,500 in offshore locations, our expertise has made ACS the industry’s leader in low cost, high-quality administration and customer care services for the past 30 years.
Information Technology Outsourcing
In following this approach, ACS’ Information Technology Outsourcing (ITO) group provides global service offerings that enable its clients to focus on their core competencies.
ITO specializes in designing, developing, and delivering effective IT solutions to help clients streamline their IT functions and improve their competitive position.
ACS offers a variety of services, including remote infrastructure management outsourcing (RIMO), traditional IT data center outsourcing, migration consulting expertise, SAP system migration and utility computing.
External links
References
- ^ http://www.acs-inc.com/pages_exp.aspx?id=512
- ^ http://www.snl.com/irweblinkx/file.aspx?IID=4039393&FID=8172673,
- ^ http://acs-inc.com/pages_exp.aspx?id=224,
- ^ http://www.xerox.com/go/xrx/template/inv_rel_newsroom.jsp?ed_name=NR_2009Sept28_Xerox_to_Acquire_ACS&app=Newsroom&view=newsrelease&format=article&Xcntry=USA&Xlang=en_US
- ^ http://acs-inc.com/pages_exp.aspx?id=564
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