Covansys Corporation Acquires PDA Software Services, Inc.Business/Technology Editors FARMINGTON HILLS Far·ming·ton Hills A city of southeast Michigan, an industrial suburb of Detroit. Population: 81,400. , Mich.--(BUSINESS WIRE)--June 3, 2002 Acquisition Expands Public Sector Technology Portfolio; Strengthens Business Process Outsourcing Business process outsourcing (BPO) is the contracting of a specific business task, such as payroll, to a third-party service provider. Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain its position in Capabilities Covansys Corporation This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. (Nasdaq: CVNS CVNS Concert Virtual Network Service CVNS Aircraft Carrier Navigation System CVNS Cardiovascular Neurological Services CVNS Continuous-Valued Number System ), a global consulting and technology services company, announced today it has acquired PDA (Personal Digital Assistant) A handheld computer for managing contacts, appointments and tasks. It typically includes a name and address database, calendar, to-do list and note taker, which are the functions in a personal information manager (see PIM). Software Services, Inc. (PDA), a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Selective Insurance Group Inc. (Nasdaq: SIGI). The acquisition expands Covansys' portfolio of impressive IT capabilities for state governments and strengthens the company's business process outsourcing capabilities, particularly in the insurance industry, where Covansys has a strong track record of application maintenance and development outsourcing experience. PDA, headquartered in Overland Park, Kansas Overland Park is the second most populous city in the U.S. state of Kansas. It is located in Johnson County, a satellite city of Kansas City, and is near Olathe, Lenexa, Prairie Village and Leawood. In 2006, the estimated population is 167,500. , is the market leader in the development, implementation and maintenance of systems for states required to meet federal tracking and reporting mandates of the Women, Infants & Children (WIC WIC - WAN Interface Card ) Program. They are the only vendor to offer a unique Web-based product, called FloodConnect that helps private insurers manage flood insurance Flood insurance denotes the specific insurance coverage against property loss from flooding. To determine risk factors for specific properties, insurers will often refer to topographical maps that denote lowlands and floodplains that are susceptible to flooding. business through the National Flood Insurance Program The National Flood Insurance Program (NFIP) was created by the Congress of the United States in 1968 through the National Flood Insurance Act of 1968 (P.L. 90-448). . "PDA's capabilities provide Covansys with market leadership in an important public sector technology segment and improved business process outsourcing capabilities," said Ned C. Lautenbach, co-chairman and chief executive officer of Covansys. "PDA's capabilities will complement Covansys' strong set of solutions in the public sector industry. Clients of both companies will benefit from the depth of our combined expertise and experience. We welcome PDA's employees to the Covansys team." PDA Software was founded in 1975 and currently employs approximately 180 full-time professionals providing products, software consulting, application development and processing services to clients nationwide. Their services and operations span a broad range of technical environments including Web application development and EDI/XML data exchange. Supported industries include federal and state agencies, insurance, agrochemical agrochemical Any chemical used in agriculture, including chemical fertilizers, herbicides, and insecticides. Most are mixtures of two or more chemicals; active ingredients provide the desired effects, and inert ingredients stabilize or preserve the active ingredients or aid and pharmaceutical. Selective Insurance Group Inc. purchased PDA in December 1998 and the company continued to function as a separate operation within Selective. "This acquisition allows our employees to do what they do best - focus on high-quality, custom software development and industry-specific solutions for state and local governments as well as the insurance and pharmaceutical industries," said Tom McCarthy, president of PDA. "Our skills and experience are the perfect fit for Covansys. Our employees will welcome the global support and significant opportunity for growth, along with Covansys' commitment to customer satisfaction." The public sector resources of PDA will become part of Covansys' Public Sector Practice, which provides consulting to more than 25 states and numerous local governments and specializes in custom and packaged solutions for public retirement, health and human services Noun 1. Health and Human Services - the United States federal department that administers all federal programs dealing with health and welfare; created in 1979 Department of Health and Human Services, HHS , transportation, labor and justice services. PDA's annual revenues are approximately $18.0 million and the net purchase price is approximately $16.5 million. PDA's income and expenses will be fully consolidated into Covansys' financial statements beginning June 1, 2002. The transaction is expected to be neutral to slightly accretive to Covansys' earnings. About Covansys Corporation 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. Our clients gain competitive advantage by leveraging our unique on-site, offsite, offshore delivery capability to achieve rapid deployment, world-class quality and reduced costs. Since its founding in1985, Covansys has successfully delivered an array of innovative and cost-effective business and technical solutions to leaders in the private and public sector. Our 4,400 employees offer a professional heritage spanning Old World legacy systems and the New Economy's leading-edge technologies. Covansys has 23 locations worldwide, including six development centers. Covansys offers one of the largest offshore capabilities among U.S.-based technology services providers, and two of the company's three wholly owned development centers in India are SEI CMM(R) Level 5 certified. Covansys was named one of the top 500 solution providers in North America in 2001 by VARBusiness magazine. Visit our web site: www.covansys.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement With the exception of statements regarding historical matters and statements concerning our current status, certain matters discussed herein are forward-looking statements that involve substantial risks and uncertainties. Such forward-looking statements may be identified by the words "anticipate," "believe," "estimate," "expect" or "intend" and similar expressions. Our actual results, performance or achievements could differ materially from these forward-looking statements. Factors that could cause or contribute to such material differences include the failure to recruit and retain IT professionals, risks related to merger, acquisition and strategic investment strategy, variability of operating results, government regulation of immigration immigration, entrance of a person (an alien) into a new country for the purpose of establishing permanent residence. Motives for immigration, like those for migration generally, are often economic, although religious or political factors may be very important. , potential cost overruns on fixed-price projects, exposure to regulatory, political and economic conditions in India and Asia, competition in the IT services industry, the short-term nature and termination provisions of contracts, economic conditions unique to clients in specific industries and limited protection of intellectual property rights. These and other factors are described in the Company's filings with the U.S. Securities and Exchange Commission. |
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