ACS unloads welfare-to-workforce business line

Affiliated Computer Services Inc. has sold its welfare-to-workforce services to Arbor E&T LLC for an undisclosed sum in order to focus on its core business process and IT outsourcing services.

In addition to an unspecified amount of cash, ACS of Dallas will retain the working capital embedded in the business, the company said last week. The sale is expected to close during the January 2006 quarter.

ACS State and Local Solutions acquired the welfare-to-workforce services through its 2001 purchase of Lockheed Martin IMS. It provides job placement services for 16 states and the District of Columbia. In fiscal 2005, the business line had sales of about $200 million, the company said.

"ACS' long-term strategy is focused on technology-enabled business process outsourcing and IT services, and therefore, the [welfare-to-work services] business was no longer strategic or core to ACS' operating philosophy going forward," said Lynn Blodgett, ACS' executive vice president and chief operating officer.

Arbor E&T LLC is a subsidiary of Res-Care Inc., of Louisville, a human-services training company that offers residential, therapeutic, job training and educational support to people with developmental disabilities, youth with special needs, and adults experiencing barriers to unemployment.

ACS has more than 50,000 employees and annual sales of $4.3 billion. It ranks No. 51 on Washington Technology's 2005 Top 100 list, which measures federal contracting revenue.