MAXIMUS (NYSE:MMS) announced today that it has completed the acquisition of Health Management Limited, an independent provider of occupational health care services in the United Kingdom.
Health Management is the premier provider of health assessments in the UK, bringing a well-respected management team and an unparalleled reputation for quality to MAXIMUS. The acquisition establishes a foothold for MAXIMUS Health Services in the UK and expands the Company's independent medical review business, which was developed over several decades of serving public health insurance programs in the United States.
Founded in 2002, Health Management is one of the largest independent occupational health providers in the UK and currently serves approximately 450 private and public sector clients. Public sector clients include UK Central Government Departments, large Local Authorities, as well as Police and Fire Authorities. Health Management is a recognized provider of health assessment services, which include health questionnaires, sickness absence referrals, pension appeals, and on-site health services.
"We are firmly committed to delivering exceptional service in the UK and the acquisition of Health Management broadens our business portfolio in this important market. Our strong performance as a leading provider for the Work Programme, combined with Health Management's deep expertise in the health assessment market, strengthens our ability to capitalize on emerging new opportunities. The acquisition provides an excellent platform to best position MAXIMUS for opportunities in the UK health market and also supports our long-term growth objectives as we expand our service offerings and bring our core capabilities into new markets," commented Richard A. Montoni, Chief Executive Officer of MAXIMUS.
Montoni continued, "Health Management and MAXIMUS share the same fundamental values, with a focus on quality and on providing clients with innovative solutions to address their health, social and productivity challenges. We believe that our people are the cornerstone of our success and we share a common commitment to investing and developing staff. We are thrilled to welcome the Health Management employees to our team and we are excited about the many opportunities ahead."
Excluding transaction costs, MAXIMUS expects that Health Management will contribute approximately $11 million in revenue for the three months ended September 30, 2013 and that it will be neutral to earnings for its fourth fiscal quarter. As a result, MAXIMUS is raising its fiscal 2013 revenue guidance by $10 million and now expects revenue to range between $1.26 billion and $1.31 billion. The Company is reiterating its guidance for adjusted diluted earnings per share and still expects a range from $1.50 to $1.58 for fiscal 2013. Earnings estimates reflect the split of the Company's common stock which occurred on June 28, 2013. For fiscal 2014, Health Management is expected to contribute approximately $55 million in revenue and it will be neutral to slightly accretive to earnings. The transaction closed on July 1, 2013.
Deloitte LLP advised Health Management Limited on the transaction.