Noah Chelednik
Maximus has agreed to purchase Veterans Evaluation Services' (VES) parent company for $1.4 billion in support of its long-term corporate strategy for revenue growth and ongoing strategic priority of expanding footprint in the U.S. federal market.
The acquisition, which is subject to U.S. antitrust filing requirements and customary closing conditions, is expected to close during Maximus' third fiscal quarter, the company said Wednesday.
The transaction is expected to generate $160 million to $175 million of revenue during the last four months of fiscal 2021.
“We welcome the employees of VES, who are leaders in serving the U.S. Department of Veterans Affairs and, together with Maximus, will continue to support our nation’s heroes, through programs and services targeted at addressing the personal, health, and employment needs of Veterans and their families,” said Bruce Caswell, president and CEO of Maximus and a 2021 Wash100 Award recipient.
With the addition of VES, the portion of assessments and appeals revenue is estimated to increase to approximately 25 percent of Maximus' total revenue on a pro-forma basis.
VES is a leading provider of medical disability examinations to determine veterans’ eligibility for compensation and pension benefits. The VES business will be added to the U.S. federal services segment of Maximus.
“We are pleased to enter into this transaction with Maximus, an organization that shares the unwavering commitment to Veterans that has always been the core of the VES mission,” commented VES Founder George Turek.
“We admire the Maximus organization’s high-quality reputation and track record of operating and managing large complex programs and performing mission critical functions for government agencies. Maximus brings additional resources, scale, and technology innovation that will position VES to provide enhanced service to our nation’s Veterans while maintaining industry-leading medical disability examination services,” Turek added.
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