Going Private May Raise Client Concerns at Acs

Summary


On March 20, Affiliated Computer Services (ACS) founder and chairman Darwin Deason and investment partner Cerberus Capital Management offered $5.93 billion in cash to take the Dallas-based IT company private. The price represents a premium of 15.5% over the March 19 closing price of $51.29 on the New York Stock Exchange. In order to go private, ACS would have to take on $6.5 billion in debt, which should prompt some concern from human resource outsourcing clients, says Randy Parks, co-chair, global technology outsourcing and privacy practice, Hunton & Williams. In any large-scale outsourcing transaction, buyers are concerned about whether the provider will be with them for the long term, he says.

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Extract


Going Private May Raise Client Concerns at Acs

HR outsourcing clients of Affiliated Computer Services might have reason to take pause regarding the provider's recent bid to go private.

On March 20, ACS founder and chairman Darwi...

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