Affiliated Computer Services, Inc. (ACS), an US listed company, acquires Ascom Transport Revenue (Fare Collection, Parking and the American part of Toll) for a purchase price of CHF 130 million. As part of the transaction, bonds and guarantees for projects for about CHF 150 million will be assumed by ACS. The transaction will lead to a high double-digit million book gain for Ascom.
Affiliated Computer Services, Inc. (ACS), a premier provider of business process and information technology outsourcing solutions, is an US listed company (NYSE: ACS) with a business volume of nearly USD 5 billion and more than 50,000 employees world-wide. ACS acquires the Transport Revenue division of Ascom with its businesses in Fare Collection and Parking with locations in Switzerland, USA, Italy, Great Britain, Spain, Hong Kong, Mexico and Chile as well as the North and South American part of the Toll business unit, and has made an irrevocable offer for the French activities of Fare Collection and Parking. The total purchase price amounts to CHF 130 million provided that the French subsidiary Ascom SA accepts the irrevocable offer of ACS. The Toll Europe and Asia business units will remain with Ascom until its economical situation has further improved. ACS is granted a preemption right on this residual part of the Toll business.
As part of the transaction, bonds and guarantees for CHF 150 million will be assumed by ACS. For Ascom a high double-digit million book gain will result from the transaction.
The entire transaction is split in an already signed part and an irrevocable offer for the French activities. ACS has made this irrevocable offer to purchase from Ascom Holding AG’s French subsidiary, Ascom SA, the French operations of the Fare Collection and Parking businesses. Ascom SA will reply to ACS’s offer after having completed the consultation of its employees’ representatives in accordance with French Labor Laws.
The closing of the transaction is subject to customary conditions for such kind of transactions, in particular to the approval of the anti-trust authorities.
ACS assumes all current contracts and will continue to operate the business out of the existing geographic locations.
"With the transaction, Ascom has achieved the most important milestone of its strategic focusing, communicated in fall 2004. ACS is an industrial buyer, which can offer optimal future prospects for the development of the business, the customers and employees as Transport Revenue is an industrial and geographical enhancement to ACS’ current activities ", says Rudolf Hadorn, CEO of Ascom.
Due to the extensive work for carving out the activities to be transferred in the different countries and the time required to obtain the anti-trust authorities approval, the closing of the transaction is expected until the end of 2005.
The entire Transport Revenue division achieved 2004 a revenue of CHF 241 million.
About Ascom
Ascom is an international solution provider with comprehensive technological know-how. In future the company aims to concentrate on the core areas of Wireless Solutions (high-value on-site communications solutions) and Security Solutions (applications for security, communication, automation and control systems for infrastructure operators, public security institutions and the army). The other areas mainly comprise Transport Revenue (revenue collection systems for public transport, parking and toll) and Network Integration (network solutions for the data/voice convergence market). With a wealth of experience in implementing complex projects for discerning customers, Ascom has established itself in important key markets. Offerings range from analysis and consulting to system design and system integration, project management, engineering and implementa-tion, right through to maintenance and support. The company has subsidiaries in 20 countries and a workforce of circa 3,600 employees worldwide. Ascom registered shares (symbol ASCN) are listed on the SWX Swiss Exchange in Zurich.
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