Affiliated Computer Services Inc. (ACS) was a company that provided information technology services as well as business process outsourcing solutions to businesses, government agencies, and non-profit organizations. ACS was based in Dallas, Texas. ACS was ranked at number 341 on the 2010 Fortune 500 list. Founded in 1988, by Darwin Deason, ACS operated in nearly 100 countries, generating over $6 billion annually. As of September 2009, ACS employed approximately 74,000 people. On September 28, 2009, Xerox Corporation announced plans to acquire ACS in a $6.4 billion transaction. The deal closed on February 8, 2010.
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Company history
Affiliated Computer Services, Inc. (ACS) was founded by Darwin Deason in 1988. Initially created as a data services provider to the financial services industry, Deason led ACS' expansion into the communications, education, financial services, government, healthcare, insurance, manufacturing, retail, and travel and transportation industries.
ACS expanded beyond banking BPO services when it signed a 10-year data processing outsourcing contract with Southland Corporation. (7-Eleven). In 1995 ACS became a public company and divested bank data processing. By FY 1996 ACS became the fourth largest commercial outsource provider in the U.S. More recently, ACS was best known for its Transportation Solutions Group (TSG), which supported transportation services including electronic toll collection, management of cities' parking systems, and photo traffic enforcement.
In 2009, ACS ranked #401 on the FORTUNE 500 list and employed about 74,000 people around the world who served thousands of commercial and government clients.
In February 2010, following its acquisition by Xerox, ACS was replaced by Urban Outfitters on the Standard & Poor 500 Index.
On July 29, 2016 the US District Court for the Southern District of New York dismissed the lawsuit pursued by Matthew Sciabacucchi. The lawsuit contended that some Xerox Corp directors and officers had abrogated their fiduciary duties in connection with the company's $6.4 billion acquisition of ACS in 2010.
July 1, 2015 Xerox sold the IT Outsourcing business to Atos. Xerox indicated that ITO did not line up with its vision of integration of BPO (business process outsourcing) and the legacy document handling concerns.
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SEC Investigation
In 2006, the Securities and Exchange Commission (SEC) notified ACS that they were conducting an informal investigation into certain stock option grants made by the company from October 1998 through March 2005. This was due to the improper and unethical practice of back-dating stock options to specific low points in the stock value. ACS said the executives improperly backdated the price of options grants during a period from 1994 to 2005. During that time, ACS said the executives deliberately chose days on which ACS's stock took a dip as the effective date for the options, making them more valuable when exercised. Rich, King, and Edwards "used hindsight to select favorable grant dates," ACS said in a statement. CEO Mark King and CFO Warren Edwards, both implicated in the wrongdoing, resigned immediately. The former CEO Jeff Rich retired in the beginning of the year, taking an $18.4 million buyout of his backdated options. The $18.4 million buyout of his backdated options resulted in no bonuses to be handed out to the entire company. Also, Jeff Rich announced his intention to resign in September 2005 because of growing personal problems and the fear of being caught for backdating stock options.[citation?] He received counsel to resign from his Young Presidents Organization.
References
External links
- ACS Official Website
- ACS Historical SEC Filings
Source of the article : Wikipedia
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