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COVANSYS ANNOUNCES THE SALE OF ITS STATE AND LOCAL GOVERNMENT
PRACTICE TO SABER CORP.
Covansys Focuses on Higher-Growth,
Higher-Margin Global Outsourcing
FARMINGTON HILLS, Mich., June 1 /PRNewswire-FirstCall/
-- Covansys Corporation (Nasdaq: CVNS), a global consulting
and technology services company, today announced that it has
completed the previously announced sale of its State and Local
Government practice to Saber Corp., a privately-held, leading
provider of software and services to state and local governments.
Saber is a portfolio company of Accel-KKR, a leading technology-focused
private equity firm.
Raj Vattikuti, Covansys' President and
Chief Executive Officer, said, "We are pleased to announce
the completion of this sale because it allows Covansys to fully
focus on its global outsourcing
business. We look forward to delivering improved IT services and
creating additional value for our shareholders."
The State and Local Government practice had revenue and income
(loss) from operations of $75.7 million and $2.8 million for the
year ended December 31, 2005 and $12.4 million and ($2.3 million)
for the three months ended March 31, 2006, respectively.
Pro-forma revenue and income from operations of Covansys without
the State and Local Government practice were $358.4 million and
$43.1 million for the year ended December 31, 2005 and $97.0 million
and $7.8 million for the three months ended March 31, 2006, respectively.
The agreement does not include Covansys' business process outsourcing
(BPO) business or any of the assets or contracts that Covansys
acquired with its acquisition of PDA Software Services in 2002.
About Saber
Saber, founded in 1997, is headquartered in Portland, OR. The
privately held company has deep customer relationships with state
and local government entities across the country, providing software
and services that underpin essential functions such as voter registration,
election management, public retirement programs, human services,
public health services, motor vehicles, unemployment insurance,
and forms and document processing. For more information, please
visit http://www.sabercorp.com.
About Accel-KKR
Accel-KKR is a technology-focused private equity firm that invests
primarily in technology businesses with $15 million to $150 million
in revenue that are well positioned for top-line and bottom-line
growth. At the core of Accel-KKR's investment strategy is a commitment
to developing strong partnerships with the management teams of
its portfolio companies and a focus on building value through the
contribution of unique financial, strategic, technical, and operational
resources. Accel-KKR has a particular focus on the following transactions:
Recapitalizations of family-owned or closely-held private companies,
divisional buyouts of larger companies, and going-private transactions.
For more information, please visit
http://www.accel-kkr.com.
About Covansys
Headquartered in Michigan, Covansys Corporation (Nasdaq: CVNS)
is a global consulting and technology services company specializing
in industry-specific solutions, strategic outsourcing and integration
services. Clients gain competitive advantage by leveraging our
unique global delivery capability to achieve rapid deployment,
world-class quality and reduced costs. Covansys is known for strategic
outsourcing and technology solutions in the healthcare, financial
services, retail and distribution, manufacturing, telecommunications
and high-tech industries. Founded in 1985, Covansys now has more
than 8,000 consultants and employees worldwide. Covansys was one
of the first U.S.-based IT services companies to establish offshore
facilities in India, and is a pioneer in seamlessly integrating
offshore capabilities into its offerings. Two of the company's
three wholly owned development centers in India are assessed at
Level 5 in SEI CMM(R). All three are ISO 9001:2000 certified and
assessed at Level 5 in PCMM(R), and five global facilities are
BS7799-2:2002 certified. For more information, please visit: http://www.covansys.com.
Contacts:
For Accel-KKR:
Joseph Kuo / Andrea Calise
Kekst and Company
212-521-4800
For Saber:
Bob Patterson
MKTX, Inc.
503-646-6589
bobp@mktx.com
For Covansys Corporation:
Investors:
James S. Trouba
(248) 848-2267
jtrouba@covansys.com
Media:
Dorothy Chisholm
(248) 848-2283
dchisholm@covansys.com
SOURCE Covansys Corporation
-0- 06/01/2006
/CONTACT: For Accel-KKR: Joseph Kuo or Andrea Calise of Kekst
and Company,
+1-212-521-4800; For Saber: Bob Patterson of MKTX, Inc., +1-503-646-6589,
bobp@mktx.com; or for Covansys Corporation: Investors: James
S. Trouba,
+1-248-848-2267, jtrouba@covansys.com, Media: Dorothy Chisholm,
+1-248-848-2283, dchisholm@covansys.com /
/Web site: http://www.covansys.com
http://www.accel-kkr.com
http://www.sabercorp.com /
(CVNS)
CO: Covansys; Accel-KKR; Saber
ST: Michigan
IN: CPR STW FIN
SU:
CM
-- NYTH161 --
8660 06/01/2006 17:16 EDT http://www.prnewswire.com
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