ACS gets offer to go private

Affiliated Computer Services has received an offer of $5.9 billion from an investment group that would take the publicly traded company private.

The Dallas-based outsourcing and information technology company confirmed last week that it had received a proposal from founder and chairman Darwin Deason and Cerberus Capital Management L.P. of New York to pay $59.25 per share for all of the outstanding shares of the company's common stock.

The total value of the all-cash proposal, which includes $2.3 billion in outstanding debt, would be $8.2 billion, according to media reports.

ACS Board of Directors has formed a special committee of independent directors to evaluate the company's strategic alternatives, including the investment group's proposal. No date was given for when the committee would make its recommendation to the board.

The company was shaken last year by the resignation of CEO and President Mark King and Chief Financial Officer Warren Edwards, who an internal investigation found to have backdated stock options.

ACS has about 58,000 employees and had annual sales of $5.3 billion in 2006. The company ranks No. 48 on Washington Technology's 2006 Top 100 list of the largest federal IT contractors.