Affiliated Computer Services announced that it has acquired BlueStar Solutions in a cash transaction for approximately $73 million.
BlueStar, with trailing annual revenues of approximately $50 million, is a leading information technology (IT) outsourcing provider specializing in applications management of packaged enterprise resource planning (ERP) and messaging services.
While the BlueStar acquisition is expected to be accretive, given its size, ACS does not believe it materially affects its prior financial guidance.
BlueStar provides services for more than 120 clients and hosts 60,000 ERP users and 100,000 messaging users located in 80 countries. BlueStar has provided comprehensive applications management for packaged ERP and messaging environments for more than five years, with a variety of additional data center services to complement them. BlueStar currently operates data centers in Phoenix, Arizona, Dallas, Texas, and Columbia, South Carolina, with the potential of transitioning some capabilities to additional ACS data centers in the future.
“This acquisition brings to ACS an extremely dedicated staff of subject matter experts in application management and provides significant penetration into the strongly emerging ERP/Messaging market,” said Lynn Blodgett, Group President of ACS Commercial Solutions. “BlueStar has an incredible track record serving clients, tremendous technological expertise, and a fantastic client base. All of these qualities made the company a great fit for ACS.” Blodgett also said that the range of ERP and messaging-related capabilities created through this acquisition makes ACS the foremost outsourcing provider for this market.
Rusty Harris will become Managing Director for ACS’ new Application Managed Services division. “The spectrum of services offered through the ACS/BlueStar integration will enable clients seeking packaged ERP outsourcing to significantly reduce IT costs and mitigate risks, while receiving an unparalleled quality of service,” he said. “We are very excited to be joining ACS. This is a win-win solution, not only for both companies, but also for clients. ACS’ strength and reputation in the IT industry will help us secure more long-term growth. We will leverage each other’s capabilities, technology, and expertise to increase our share of the IT outsourcing market.”
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