Lockheed Martin Corporation and Affiliated Computer Services Inc (ACS) announced today that they have reached a definitive agreement under which ACS will acquire IMS Corporation, a wholly owned subsidiary of Lockheed Martin, for $825 million in cash.
Under the agreement, which has been approved by the Boards of Directors of both corporations, ACS will acquire all of the stock of IMS.
The proposed transaction is expected to close in the third quarter of 2001 and result in a nonrecurring and unusual net gain of between $250 and $300 million, or $.58 to $.70 per diluted share.
After transaction costs and associated state and US federal tax payments, this divestiture is expected to yield between $500 and $550 million in cash to Lockheed Martin.
The transaction is subject to regulatory approvals and satisfaction of other customary conditions.
The IMS lines of business include Children and Family Services, Information Resources Management, Municipal Services, Transportation Systems and Services, and Welfare and Workforce Services.