Maximus and PSI sign deal

Editors Note:  Both companies have major contracts with Georgia Medicaid. Maximus operates the Georgia Families program web portal and IT structure; and PSI handles the Peachcare eligibility system.

DATE: April 12, 2012

MAXIMUS Signs Definitive Agreement to Acquire Policy Studies Inc. for $67 Million Cash

Acquisition to Strengthen the Company’s Leadership in the Administration of U.S. Health and Human Services Programs

(RESTON, Va. – April 12, 2012) – MAXIMUS (NYSE:MMS) announced today that it has signed a definitive agreement to acquire Policy Studies Inc. (PSI), a government health and human services provider. The acquisition is expected to strengthen MAXIMUS’ leadership in the administration of health and human services programs across the United States. The acquisition is expected to close on April 30, 2012 and is subject to certain closing conditions.

For more than 25 years, Denver-based Policy Studies Inc. has supported government clients in the administration of public programs that include public health insurance programs, such as Medicaid and the Children’s Health Insurance Program (CHIP), welfare-to-work services, and child support enforcement. Policy Studies Inc. has approximately 1,300 employees across the United States.

The all-cash transaction is valued at approximately $67 million. Policy Studies Inc. had revenue of approximately $137 million for the year ended December 31, 2011. Excluding acquisition-related and one-time charges, MAXIMUS expects the acquisition to be slightly accretive for the remainder of its fiscal 2012 year and fully accretive in fiscal 2013.

“The acquisition of Policy Studies Inc. strengthens our core health and human services reach within the United States and brings added resources and new customers,” commented Richard Montoni, Chief Executive Officer of MAXIMUS. “MAXIMUS and Policy Studies Inc. have known and respected each other for many years and the high degree of overlap between the operations of MAXIMUS and Policy Studies Inc. make this step a natural fit for both companies. The acquisition brings together extensive experience and knowledge in the domestic health and human services markets, offers the ability to leverage infrastructure and innovation, and focuses business development resources as macro trends continue to increase demand for our core services.”

MAXIMUS will update its financial guidance on May 3, 2012, concurrent with reporting its results for the quarter ended March 31, 2012.

Morgan Stanley & Co. advised Policy Studies Inc. on the transaction.