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This article relies on references to primary sources. (October 2009) |
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| Type | Subsidiary |
|---|---|
| Industry | Information Technology Services |
| Founded | 1988 |
| Founder(s) | Darwin Deason |
| Headquarters | Dallas, Texas, USA |
| Area served | Worldwide |
| Key people | Darwin Deason (Chairman of the Board) Lynn R. Blodgett (President), (CEO) & (Director) |
| Products | Service Provider, ITO/BPO Outsourcing |
| Revenue |  US$6.52 Billion (FY 2009)[1] |
| Operating income | US$686 Million (FY 2009)[1] |
| Net income | US$350 Million (FY 2009)[1] |
| Total assets | US$6.90 Billion (FY 2009)[1] |
| Total equity | US$2.62 Million (FY 2009)[1] |
| Employees | 74,000 - (June 2009)[1] |
| Parent | Xerox Corporation |
| Website | ACS-Inc.com |
Affiliated Computer Services Inc. (ACS) provides information technology services as well as business process outsourcing solutions to businesses, government agencies, and non-profit organizations. ACS is based in Dallas, Texas and the current CEO is Lynn Blodgett. ACS is ranked at number 341 on the 2010 Fortune 500 list.[2] Founded in 1988, by Darwin Deason, ACS now operates in nearly 100 countries, generating over $6 billion annually. As of September 2009, ACS employs approximately 74,000 people.[3]
On September 28, 2009, Xerox Corporation announced plans to acquire ACS in a $6.4 billion transaction.[4][5] The deal closed on February 8, 2010.[6]
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Company history [edit]
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 Corp. (7-Eleven). In 1995 ACS became a public company and divested bank data processing. By FY1996 ACS became the fourth largest commercial outsourcer in the U.S. Currently, ACS is best known for its Transportation Solutions Group (TSG), which supports 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 employs about 74,000 people around the world who serve 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.
SEC Investigation [edit]
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.[7] 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.[8] 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. He received councel to resign from his Young Presidents Organization.[9]
References [edit]
- ^ a b c d e f "ACS, Form 10-K, Annual Report, Filing Date Aug 27, 2009". secdatabase.com. Retrieved Dec 31, 2012.
- ^ "Fortune 500 2010". CNN Money. Archived from the original on 4 September 2010. Retrieved 31 August 2010.
- ^ "ACS History and Timeline - The Beginning Through Recent Growth". ACS, Inc. Retrieved 31 August 2010.
- ^ "ACS, Form 425, Filing Date Sep 30, 2009". secdatabase.com. Retrieved Dec 31, 2012.
- ^ "ACS, Form 8-K, Current Report, Filing Date Sep 29, 2009". secdatabase.com. Retrieved Dec 31, 2012.
- ^ "Xerox Completes ACS Acquisition", Xerox Corporation, February 8, 2010
- ^ http://sec.gov/Archives/edgar/data/2135/000129993306001469/htm_10732.htm
- ^ http://www.informationweek.com/news/global-cio/outsourcing/showArticle.jhtml?articleID=196500185
- ^ http://www.pomtalk.com/pomtalk/2006/11/acs_finally_end.html
External links [edit]
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