TYSONS, Va.--(BUSINESS WIRE)--Maximus (NYSE: MMS), a leading provider of government services, announced today it completed the divestiture of all operations in Australia and South Korea, which were reported under the Outside the U.S. segment. The purchaser, Angus Knight, is a global provider of employment, education and training, health and wellbeing, and community services with operations in seven countries.
Primarily based around employment services, Maximus has operated in Australia since 2002 and in South Korea since 2020. With the transaction, over 1,200 employees are joining Angus Knight to enable a seamless transition of operations for the respective government customers. This sale follows prior divestitures of Maximus' employment services operations in Sweden, Italy, Singapore, and Canada.
"This transaction has been a management priority and we appreciate the immense effort by all stakeholders involved, including Angus Knight, who has proven to be an excellent partner as they welcome more of our former colleagues," said Bruce Caswell, President and Chief Executive Officer. "This is a significant milestone in our commitment to optimize the Outside the U.S. portfolio and improve its alignment with the broader Maximus strategy."
The combined annual revenue run-rate for the two entities under Maximus was approximately $120 million, while the estimated impact to fiscal year 2025 revenue guidance is approximately $100 million. The transaction is estimated to be slightly accretive to fiscal year 2025 adjusted EBITDA margin and adjusted diluted EPS guidance, which exclude anticipated divestiture-related charges largely related to non-cash realized foreign exchange losses. For the full fiscal year 2025, the margin outlook improves for Outside the U.S. segment to between 3% and 5%.
About Maximus
As a leading strategic partner to government, Maximus helps improve the delivery of public services amid complex technology, health, economic, environmental, and social challenges. With a deep understanding of program service delivery, acute insights that achieve operational excellence, and an extensive awareness of the needs of the people being served, our employees advance the critical missions of our partners. Maximus delivers innovative business process management, impactful consulting services, and technology solutions that provide improved outcomes for the public and higher levels of productivity and efficiency of government-sponsored programs. For more information, visit maximus.com.
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