ACS Acquiring SCT

Affiliated Computer Services Inc. is acquiring the government solutions business of Systems & Computer Technology Corp. for $85 million in cash.

With this acquisition, Dallas-based ACS will increase its state and local business by about 25 percent and become a major provider of outsourcing and IT services to state and local governments, analysts and company officials said.

SCT of Malvern, Pa., has about 800 employees in its government solutions business, located in Lexington, Ky. The unit generates about $85 million annually.

ACS' state and local government business generates about $300 million of the company's $1.9 billion in annual revenue, said Tom Meagher, vice president of equity research at BB&T Capital Markets, Richmond, Va.