Cogent Systems Completes Acquisition of Security Solutions Division of MAXIMUS - May 08, 2008
SOUTH PASADENA, Calif. & RESTON, Va. — Cogent Systems (Nasdaq:COGT) and MAXIMUS (NYSE:MMS) today announced that Cogent Systems has completed the acquisition of MAXIMUS Security Solutions Division (SSD) for an aggregate cash purchase price of $5 million. MAXIMUS Security Solutions Division provides identity (ID) management and credentialing integration services, security consulting, and custom web application development, including logical and physical access integration with Department of Defense Common Access Card (DoDCAC) and Personal Identity Verification (PIV) cards.
The acquisition is expected to contribute approximately $5 million in revenue to Cogent Systems for the remainder of 2008. With over fifteen years of experience designing and implementing multi-technology and multi-application smart card systems using biometric technologies, SSD is expected to enhance Cogent Systems' ability to provide ID systems integration services to federal civilian agencies and military departments, state and local governments, and international customers. Additionally, the division has designed and operates ID management infrastructures and services for e-Authentication and healthcare eligibility cards.
"We expect this acquisition to enable us to enter the growing identity management and credentialing integration business with a wide range of established customers, strong personnel and a steady revenue stream," commented Ming Hsieh, President and Chief Executive Officer of Cogent. "The MAXIMUS Security Solutions Division has built a profitable business serving government customers including the Department of Defense, the U.S. Department of Veteran Affairs, the FDIC and NASA. With more HSPD-12 cards produced for Federal customers than any other integrator, they have the potential to continue to grow by helping agencies comply with this directive. The acquisition will add approximately forty employees to Cogent, all highly qualified and many with security clearances, and we welcome them to the company."
Richard Montoni, Chief Executive Officer of MAXIMUS, commented, "This divestment is consistent with our strategy of focusing more exclusively on our core government health and human services offerings. SSD has been a strong operational and financial performer for MAXIMUS with exceptional personnel and industry-leading capabilities. Under Cogent's stewardship, we are confident that the business will reach its full potential."
Hsieh continued, "Our primary focus remains on diversifying our revenue stream through internal development, most notably in biometric physical and logical access control products and by leveraging our technology for civil and commercial applications. At the same time, we will continue to look opportunistically for targeted acquisitions to complement our internal growth initiatives and increase our business."
About Cogent Systems
AdvertisementCogent is a global biometric identification solutions provider to governments, law enforcement agencies, and commercial enterprises. Cogent provides the highest quality identification systems, products and services with leading technology, accuracy and speed. Cogent's Automated Fingerprint/Palmprint Identification Systems, or AFIS, enable customers to capture fingerprint and palm print images electronically, encode prints into searchable files, and accurately compare a set of fingerprints/palm prints to a database containing potentially millions of prints in seconds. For more information, please visit http://www.cogentsystems.com.
About MAXIMUS
MAXIMUS is a leading provider of program management, consulting and information technology solutions primarily to government clients. The Company has more than 6,000 employees located in more than 220 offices in the United States, Canada and Australia. MAXIMUS is included in the Russell 2000 Index and the S&P SmallCap 600 Index.
Forward-Looking Statements
This press release contains, in addition to historical information, forward-looking statements. Such statements are based on management's current estimates and expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Cogent is providing this information as of the date of this press release, and expressly disclaims any duty to update information contained in this press release.
Forward-looking statements in this press release include, without limitation, express and implied statements regarding Cogent's acquisition of the SSD, the expected benefits of the acquisition to Cogent and integration of the SSD's products and services with those of Cogent. These forward-looking statements involve risks and uncertainties which could cause actual results to differ materially from those expressed or implied here. Readers are referred to Cogent's Report on Form 10-K for the year ended December 31, 2007 filed by Cogent with the Securities and Exchange Commission which identifies important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including but not limited to: changes in government policies; uncertain political conditions in international markets; deriving a significant portion of revenues from a limited number of customers; deriving a significant portion of revenues from the sale of solutions pursuant to government contracts; failure of the biometrics market to experience significant growth; failure of Cogent's products to achieve broad acceptance; potential fluctuations in quarterly and annual results; changes in Cogent's effective tax rate; failure to successfully compete; failure to comply with government regulations; failure to accurately predict financial results due to long sales cycles; negative publicity and/or loss of clients due to security breaches resulting in the disclosure of confidential information; loss of export licenses or changes in export laws; failure to manage projects; rapid technology change in the biometrics market; loss of a key member of management team; termination of backlog orders; loss of limited source suppliers; negative audits by government agencies; failure to protect intellectual property; exposure to intellectual property and product liability claims; difficulty in integrating acquisitions; and failure to achieve the expected benefits of acquisitions.. The information contained in this press release is a statement of Cogent's present intention, belief or expectation and is based upon, among other things, existing industry conditions, market conditions, the economy in general and Cogent's assumptions. Cogent may change its intention, belief or expectation, at any time and without notice, based upon any changes in such factors, in its assumptions or otherwise. Cogent undertakes no obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. By including any information in this press release, Cogent does not necessarily acknowledge that disclosure of such information is required by applicable law or that the information is material.
The Blueshirt Group Chris Danne, 415-217-7722 chris@blueshirtgroup.com or MAXIMUS Lisa Miles, 703-251-8637 (Investors) lisamiles@maximus.com Rachael Rowland, 703-251-8688 (Media) rachaelrowland@maximus.com
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