ACS completes Mellon HR deal, brings on Davies
Affiliated Computer Services Inc. has completed its acquisition of the human resources consulting and outsourcing business of Mellon Financial Corp.
The final purchase price was knocked down from $445 million to $405 million to take into account sluggish human resources consulting revenues, ACS said. The Dallas company plans to fund the transaction, at least initially, through its $1.5 million credit facility.
"The finalization of the acquisition makes ACS a major contender in the end-to-end HR services marketplace," said Jeff Rich, ACS' chief executive officer.
The acquisition also further solidifies the company's position as a provider of business process outsourcing services, he said.
Pittsburgh, Pa.-based Mellon Financial's human resource business serves about 3,000 clients, and its consulting business is the seventh-largest HR consulting practice in the United States.
DAVIES JOINS ACS GOVT
In other ACS news, the company has hired consultant and Washington Technology columnist Tom Davies as senior vice president of business development for its Government Solutions Group.
Davies will report to Harvey Braswell, ACS' executive vice president for government sales with the company's Government Solutions Group.
Davies was formerly senior vice president for product and business development with research and consulting firm Current Analysis Inc., Sterling, Va. Before joining Current Analysis, he was senior vice president of Internet Services for market researcher Federal Sources Inc.
Davies previously worked for EDS Corp. and Systems and Computer Technology Corp., now part of ACS.
He also had served as Florida's deputy executive administrator for the Governor's Information Resource Commission.
Since 1997, Davies has written "Eye on the States" column for Washington Technology examining trends and opportunities in the state and local market.
ACS provides IT and business process outsourcing services for the government and commercial sectors.
William Welsh is the managing editor of Defense Systems. Follow him on Twitter: @WilliamWelsh12.