Accenture to Acquire Defense Consulting Firm MAXIM Systems, Inc.
RESTON, Va; Nov. 15, 2007 -- Accenture (NYSE: ACN) has agreed to acquire MAXIM Systems, Inc., an employee-owned defense consulting firm that provides advanced engineering and technical services in the areas of command and control, multi-level security and satellite communications. Terms of the deal were not disclosed.
MAXIM Systems, based in San Diego, Calif., designs, develops, installs and supports systems for C4ISR — which stands for Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance — for military and intelligence agencies. C4ISR systems are used in battlefield activities such as joint command and control, which is the directing of necessary personnel and equipment to accomplish missions.
The acquisition will further expand Accenture’s defense practice in the U.S. military market for command and control systems, which use data collection, processing and analysis to help military commanders maintain situational awareness on the battlefield, examine options in real-time, and implement their courses of action.
Once the acquisition has closed, MAXIM Systems’ approximately 135 employees are expected to join Accenture, with its CEO, Jim Wangler, serving in a leadership role with Accenture’s Public Service operating group, as part of Accenture National Security Services LLC.
“MAXIM Systems possesses unique capabilities in C4ISR that will further enhance our existing defense industry capabilities,” said Eric Stange, managing director of Accenture’s U.S. Defense practice. “Along with our other recent acquisitions of the George Group and Gestalt, this acquisition will enable Accenture to penetrate deeper into C4ISR, a key strategic growth area. Our vision is to provide new levels of service and leading-edge practices that support our defense clients in the mission space and help them to achieve high performance.”
MAXIM Systems offers a wide range of services and capabilities to its U.S. Department of Defense clients. For the U.S. Navy, MAXIM Systems delivers space and communications systems that support Ultra High Frequency (UHF) satellite programs. MAXIM Systems also supports the Combined Enterprise Regional Information Exchange System (CENTRIXS), a secure wide area network that allows the United States and more than 30 coalition nations to share intelligence and other operational information necessary to unify efforts.
“MAXIM’s work with intelligence services, the U.S. Navy and other key defense organizations has earned us a solid reputation for C4ISR security and technology work,” said MAXIM Systems CEO Jim Wangler. “We look forward to integrating seamlessly within Accenture’s Defense practice and helping to broaden Accenture’s capabilities in C4ISR.”
The acquisition is subject to customary closing conditions and is expected to close in approximately 30 days.
Accenture National Security Services LLC is a wholly owned subsidiary of Accenture LLP, the U.S.-based business of Accenture, and delivers innovative solutions to the U.S. government defense and classified markets. Accenture is a global management consulting, technology services and outsourcing company. Committed to delivering innovation, Accenture collaborates with its clients to help them become high-performance businesses and governments. With deep industry and business process expertise, broad global resources and a proven track record, Accenture can mobilize the right people, skills and technologies to help clients improve their performance. With approximately 170,000 people in 49 countries, the company generated net revenues of US $19.70 billion for the fiscal year ended Aug. 31, 2007. Its home page is www.accenture.com.
Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied. These include, without limitation, risks that: Accenture and MAXIM Systems will not be able to close the transaction in the time period anticipated, or at all, which is dependent on the parties’ ability to satisfy certain closing conditions; the transaction might not achieve the anticipated benefits for Accenture; our business could be negatively affected if we cannot expand and develop our services and solutions in response to changes in technology and client demand; the management consulting, systems integration and technology and outsourcing markets are highly competitive and we might not be able to compete effectively; our business could be negatively affected by economic and political conditions and the effects of these conditions on our clients’ business and levels of business activity; our work with government clients exposes us to additional risks in the government contracting process; clients may not be satisfied with our services; our business could be negatively affected by legal liability that results from our providing solutions or services; our results could be adversely affected if our clients terminate their contracts with us on short notice; our outsourcing services subject us to operational and financial risk; liabilities could arise if our subcontractors or other third parties cannot deliver their project contributions on time or at all; our results of operations may be adversely affected by the type and level of technology spending by our clients; our profitability may suffer if we are not able to maintain favorable pricing rates and utilization rates, if we cannot control our costs, or if we cannot anticipate the cost and complexity of performing our work; our global operations are subject to complex risks, some of which might be beyond our control; our growth and our ability to compete may be adversely affected if we cannot attract, retain and motivate our employees or efficiently utilize their skills, including those personnel currently employed by MAXIM Systems; our business may be adversely affected if we cannot manage the organizational challenges associated with the size and expansion of our company; as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in our most recent annual report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Statements in this press release speak only as of the date they were made, and Accenture undertakes no duty to update any forward-looking statements made in this news release or to conform such statements to actual results or changes in Accenture’s expectations.