The Mess at ACS: A Time Line
One expert calls it the soap opera of the outsourcing industry. Here is a rundown of recent buyout bids, boardroom fights and other notable developments at Affiliated Computer Services.
CIO — Two aborted buyout attempts and a boardroom meltdown at outsourcing provider Affiliated Computer Services (ACS) can be traced back to 2005 through press releases, articles in the business press and ACS’s diminishing stock price.
Dec. 22, 2005
ACS’s stock price closes at $58.08 per share.
Dec. 23, 2005
A consortium of investment firms led by the Texas Pacific Group
and including Bain Capital in talks to acquire ACS for $8 billion, or $65 per
share.
Jan. 17, 2006
ACS announces that “
recent unsolicited discussions with a group of private-equity
investors regarding a possible sale of the company have
ended .”
Feb. 28, 2006
ACS named to Fortune's list of the Most Admired
Companies in America for the fifth consecutive year.
Aug. 7, 2006
ACS confirms that it is conducting an
internal investigation into stock options backdating going
back to 1994 in response to a pending informal investigation by
the Securities and Exchange Commission and a grand jury
subpoena issued by the U.S. Attorney for the Southern District
of New York.
Sept. 14, 2006
Investigation into stock options’ backdating continues.
Since it includes a review of the preparation of the company's
Form 10-Q for the quarterly period ended March 31, 2006,
ACS says it will not be able to file its annual report for the
fiscal year due Sept. 13, 2006.
Nov. 27, 2006
Both ACS’s CEO and CFO
resign after an internal investigation concludes that their
conduct violated the company’s code of ethics.
Mar. 19, 2007
ACS’s stock price closes at $51.29 per share.
Mar. 21, 2007
ACS confirms receipt of a proposal from its cofounder Chairman
of the Board Darwin Deason (the holder of approximately 42
percent of the company's outstanding voting stock) and Cerberus
Capital Management, to acquire all outstanding shares of
company common stock for a cash purchase price of $59.25 per
share.
ACS’s board creates a special committee of independent directors to evaluate the company's “strategic alternatives,” including the Deason-Cerberus proposal.
Mar. 22, 2007
An article in
The Wall Street Journal states: “An
investigation into options backdating at Affiliated Computer
Services Inc. unearthed a handwritten note in which ACS
Chairman Darwin Deason discusses the practice of
‘always’ picking the ‘lowest’ prices
‘so far’ in the quarter to award stock
options.”
April 20, 2007
ACS’s stock price closes at $58.75 per share.
April 23, 2007
ACS confirms the receipt of a revised proposal from Chairman
Deason and Cerberus Capital Management:
$62 per share.
