PLANO, Texas, Nov. 13 /CNW/ -- EDS today announced it has agreed to
purchase an approximate 93 percent equity interest in Saber Holdings, Inc., a
leading provider of software and services to U.S. state governments, from
various sellers, including majority shareholder Accel-KKR, for approximately
$420 million in cash. Saber's Chief Executive Officer Nitin Khanna and
President and Chief Operating Officer Karan Khanna will retain an approximate
7 percent interest in Saber and continue to lead the company following the
Saber, founded in 1997, is one of the world's fastest-growing providers
of software products and services that enable state and local governments to
better serve citizens. The Portland, Oregon-based company, which has
operations in 35 states, more than doubled its revenue each year since 2004.
Saber's current product line includes market-leading software and
services that underpin essential, federally funded government functions such
as voter registration, election management, public retirement programs, human
services, public health services, motor vehicle registration and unemployment
"This transaction creates a growth opportunity for EDS as Saber brings
complementary capabilities to EDS' already strong presence in the U.S. state
and local government market, and is consistent with our strategy to move
aggressively into higher-value application services," said Joe Eazor, EDS
executive vice president, Corporate Strategy and Business Development.
"The combination of Saber's industry-leading applications portfolio,
geographic breadth and deep understanding of government technology needs,
together with EDS' global resources and demonstrated strengths in systems
integration, will provide unmatched, end-to-end solutions for clients,"
"The transaction with Saber demonstrates EDS' commitment to the U.S.
government sector and our strategy to provide mission-critical applications to
the state and local government market," commented Dennis Stolkey, EDS vice
president and general manager, U.S. Government. "Saber has an impressive track
record of success in serving rapidly growing segments of the government
market. They have a strong, dynamic management team along with a leverageable
delivery model that fits well with EDS' strategic approach to serve the needs
of state and local governments.
"EDS has collaborated with Saber on projects in the past, and we are well
aware of the capabilities they bring to our partnership," said Stolkey. "We
look forward to building on our already close relationship and the opportunity
to help our government clients improve service to citizens, gain efficiencies
in their work processes and reduce costs."
"At Saber, we cannot imagine having better clients than government
organizations who themselves are committed to their citizens. As such, Saber
has always been dedicated to providing government clients with customized
software that enables them to serve their citizens quickly and efficiently.
Augmenting this capability with products, services, assets and talent from EDS
will allow Saber to provide clients with the comprehensive solutions that
today's sophisticated citizen demands," said Nitin Khanna, chief executive
officer of Saber.
"We are delighted with our new relationship with EDS as we believe it
will enable us to take our already successful business to the next level while
continuing to provide 'white glove' service to our clients," said Karan
Khanna, president and chief operating officer of Saber.
The state and local government market for IT services is a highly
attractive growth segment valued at approximately $50 billion by research firm
INPUT and is estimated to have a compound annual growth rate of nearly 8
percent, driven by modernization of legacy systems and strong demand in new
market segments for software and service solutions. Last year, approximately
$3.3 billion, or 16 percent, of EDS' revenue came from U.S. Government
The transaction, which is subject to termination of the Hart-Scott-Rodino
antitrust waiting period, is expected to close before year-end. The
acquisition is not expected to have a material impact on EDS' 2008 earnings,
but is expected to be accretive to free cash flow in 2008.
Saber, founded in 1997, is headquartered in Portland, OR. The privately
held company has deep customer relationships with state and local government
entities across the country, providing software and services that underpin
essential functions such as voter registration, election management, public
retirement programs, human services, public health services, motor vehicles,
unemployment insurance, and forms and document processing. For more
information, please visit http://www.sabercorp.com.
Accel-KKR is a technology-focused private equity firm that invests
primarily in technology businesses with $15 million to $150 million in revenue
that are well positioned for top-line and bottom-line growth. At the core of
Accel-KKR's investment strategy is a commitment to developing strong
partnerships with the management teams of its portfolio companies and a focus
on building value through the contribution of unique financial, strategic,
technical, and operational resources. Accel-KKR has a particular focus on the
following transactions: Recapitalizations of family-owned or closely-held
private companies, divisional buyouts of larger companies, and going-private
transactions. For more information, please visit http://www.accel-kkr.com.
EDS (NYSE: EDS) is a leading global technology services company
delivering business solutions to its clients. EDS founded the information
technology outsourcing industry 45 years ago. Today, EDS delivers a broad
portfolio of information technology and business process outsourcing services
to clients in the manufacturing, financial services, healthcare,
communications, energy, transportation, and consumer and retail industries and
to governments around the world. Learn more at eds.com.
The statements in this news release that are not historical statements,
including statements regarding the amount of new contract values, are
forward-looking statements within the meaning of the federal securities laws.
These statements are subject to numerous risks and uncertainties, many of
which are beyond EDS' control, which could cause actual results to differ
materially from such statements. For information concerning these risks and
uncertainties, see EDS' most recent Form 10-K. EDS disclaims any intention or
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
Travis Jacobsen - Media Relations Roxane Barry - Investor Relations
Additional Media Contacts:
Kekst and Company
For further information:
For further information: Travis Jacobsen, Media Relations,
+1-972-797-8751, firstname.lastname@example.org, or Roxane Barry, Investor Relations,
+1-972-605-6420, email@example.com, both of EDS; or Sanjay Menon of Saber
Corp., +1-614-296-0886, firstname.lastname@example.org; or Joseph Kuo of Kekst and
Company, +1-212-521-4863, for Accel-KKR; Web Site: http://www.eds.com,