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EXHIBIT 99.1
FOR IMMEDIATE RELEASE
CONTACT:
Mark King
EVP, Chief Financial Officer
ACS, Inc.
214-841-8007
[email protected]
ACS ANNOUNCES SALE OF ITS ATM BUSINESS
Strategic plan begins with sale of ATM business with divestitures of other
non-strategic operations to follow
DALLAS, TEXAS: June 30, 2000 -- ACS (NYSE: ACS), a leading provider of
information technology solutions and services to commercial and government
clients worldwide, announced today the signing of a definitive agreement to sell
its automated teller machine (ATM) processing and maintenance business for a
purchase price of approximately $180 million.
ACS also announced that it is executing several initiatives to position the
company for long-term growth. These initiatives include the divestiture of other
non-strategic operations, primarily in the commercial professional services and
systems integration area. The other divestitures are expected to be completed
during the quarter ended September 30, 2000. ACS anticipates the net effect of
the gain from the ATM divestiture and the net loss from the other divestitures
will result in a non-recurring net positive earnings impact for the quarter
ending June 30, 2000.
Mr. Jeff Rich, President and Chief Executive Officer of ACS, said: "We are
focused on creating long-term shareholder value and we concluded that ACS'
future is providing end-to-end information technology (IT) and business process
outsourcing (BPO) solutions to commercial and government clients. These services
represent the vast majority of our current revenues, our highest growth
potential, and is where we will focus our efforts."
ACS' ATM business is being acquired by Genpass, Inc., a newly formed company
funded by GTCR Golder Rauner. GTCR is a leading Chicago-based private equity
firm with more than $4 billion of capital under management. Bipin C Shah will
serve as Chief Executive Officer of Genpass. "We want to continue to provide the
highest level of customer service while taking our customers to the next
generation of products and services through the Internet," said Shah. Shah's
business partner and co-founder of Genpass, Gregory Dillett, will serve as Chief
Financial Officer.
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Mr. Mark King, Executive Vice President and Chief Financial Officer of ACS,
said: "The net effect of the sale of the ATM business and the other initiatives,
which together account for approximately 15% of our current consolidated
revenues, should be modestly accretive to earnings on a prospective basis. More
important, our organic revenue growth rate, which is already among the highest
in the IT services sector, should accelerate as a result of these divestitures."
ACS was advised on the transaction by First Annapolis Capital, Inc.
ACS is a Fortune 1000 company providing technology solutions to commercial and
government clients worldwide. The company delivers e-solutions; consulting and
systems integration services; and complete technology and business process
outsourcing solutions to a diverse base of clients and industries. ACS solutions
are designed to promote value and enhance business performance and are delivered
by more than 17,000 people in 20 countries. The company's Class A common stock
trades on the New York Stock Exchange under the symbol "ACS." ACS makes
technology work for our clients. Visit ACS on the Internet 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 n 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 the most recent Form 10-K. ACS disclaims any intention or
obligation to revise any forward-looking statements, whether as a result of new
information, future event, or otherwise.
