ResCare Takes Over ACS Unit

The deal should add $165 million to yearly revenue, ResCare says.
Author:
Publish date:

ResCare

(RSCR)

said its Arbor E&T unit agreed to buy the operating assets and business of

Affiliated Computer's

(ACS)

workforce services group, a deal that it estimates will generate around $165 million in annual revenue.

The financial terms of the acquisition weren't disclosed, however. The purchase will be funded with existing cash and ResCare's senior credit line.

Affiliated Computer's workforce services operation has contracts in 16 states and Washington, D.C. The business works with adults who have lost their jobs or face some kind of barrier to employment. ResCare said it should close the pact in the first quarter of 2006.

ResCare, based in Louisville, Ky., offers training and educational services to people who are disadvantaged or disabled. Affilated Computer expects to record a gain in connection with the transaction.