Maximus Finalizes Global Divestiture to Focus on Core Markets
Maximus Completes Divestiture of Operations in Australia and South Korea
Maximus (NYSE: MMS), a leading provider of government services, has successfully completed the divestiture of its operations in Australia and South Korea. These operations were part of the company's Outside the U.S. segment. The purchaser, Angus Knight, known for its comprehensive services in employment, education, health, and community services, is poised to integrate these operations seamlessly.
Overview of the Transaction
Maximus's exit from Australia and South Korea marks a pivotal move in its strategy. The company has been present in Australia since 2002 and expanded into South Korea in 2020, focusing primarily on employment services. The recent transaction involves the transfer of over 1,200 employees to Angus Knight, ensuring a smooth transition for government customers reliant on these services.
Commentary from Leadership
Bruce Caswell, President and Chief Executive Officer of Maximus, emphasized the significance of this transaction, stating that it represents a key priority for management. He expressed gratitude to all stakeholders, particularly Angus Knight, for their collaborative efforts throughout this process. This milestone not only signifies a strategic shift but also optimizes Maximus’s portfolio outside the U.S., further aligning it with their overall business strategy.
Financial Implications of the Sale
The divestiture reflects a combined annual revenue run-rate of approximately $120 million while projected impacts on fiscal year 2025 revenue guidance are estimated around $100 million. Following this transaction, Maximus expects improvements in its adjusted EBITDA margins and adjusted diluted EPS guidance for 2025, excluding anticipated charges associated with the divestiture. The outlook for the Outside the U.S. segment margin now stands between 3% and 5% for the full fiscal year 2025.
About Maximus
Maximus serves as a strategic partner to government entities, dedicated to enhancing the delivery of public services amid complex challenges across technology, health, and social sectors. With a profound understanding of program service delivery and operational excellence, Maximus is committed to advancing the critical missions of its partners through innovative business process management and technology solutions. For more about Maximus, visit maximus.com.
Frequently Asked Questions
What prompted Maximus to divest its Australia and South Korea operations?
The decision to divest was part of Maximus's strategy to align its business operations more closely with its core focus areas, optimizing the Outside the U.S. portfolio.
Who acquired Maximus's operations in Australia and South Korea?
Angus Knight, a global service provider in employment, education, and community services, acquired the operations.
What was the revenue impact expected from the divestiture?
The divestiture had an annual revenue run-rate of about $120 million, with an estimated impact on fiscal year 2025 revenue guidance of approximately $100 million.
How many employees were affected by this transaction?
Over 1,200 employees transitioned from Maximus to Angus Knight as part of this divestiture.
What are the expected financial outcomes for Maximus post-transaction?
Maximus anticipates improvements in adjusted EBITDA margins and adjusted diluted EPS guidance, leading to a more favorable margin outlook for the Outside the U.S. segment.
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