Asset Management Site : Cerberus Capital Management Plans to Buy Up ACS

In recent days, the principals of Cerberus Capital Management (CCM) announced their intention to buy all of the available outstanding shares of common stock of the company Affiliated Computer Services (ACS) for a price of $59.25 per share. Cerberus also indicated that this move will be done in partnership with Darwin Deason, who is the current chairman of the board at Affiliate Computer Services and who is also the founder of the company. Industry estimates say that this transaction will be worth more than eight billion dollars and the funding for this deal is said to be secured through CitiCorp Global Markets.

Deason, who plans to continue to serve as the Executive Chairman after the deal is completed, made assurances that the Affiliated Computer Services would continue to operate according to the current practices and policies of ACS and will endeavor to maintain the cultivation of its highly valued employee base. According to a Cerberus spokesman, the pool of talented and experienced employees of ACS is "one of its most important assets." In addition, both Deason and Cerberus state that ACS will continue to provide the valuable management knowledge and high quality asset management services that ACS customers have come to expect.

The partnership of the combined forces of Cerberus Capital Management and Deason has stated that they fully intend to open up negotiations with ACS as soon as possible. They further state that they are confident that they will be able to quickly come to an agreement and completion of the deal. Aside from the fact that Deason is the founder and acting chairman of Affiliated Computer Services, the partners are planning to go through the complete process of standard due diligence.

The question also naturally arises of any type of conflict of interest in the structure of the deal. However, neither CCM nor Mr. Deason anticipate that there will be any impediments to completion of the transaction or any regulatory approvals that might get in the way of a timely and smooth closing of the deal.

CCM and Deason have agreed to jointly submit their proposal to the Board of Directors of ACS and negotiate with a specially selected committee of independent company directors. The investment partnership is confident that their complete proposal and the process of negotiation and due diligence will result in an agreement that is in the best interest of all parties involved, including the public shareholders of ACS. They also expect that their proposal will be subject to typical market scrutiny and discussion but are confident of the overall plan they are proposing.

Cerberus Capital Management has been in operation since 1992 and since its inception it has become a global leader in the field of providing asset management services. Cerberus has been providing investment management services for various investment accounts and funds that have a total capital value of more than $25 billion. In addition, the firm brings considerable management knowledge and experience to its clients and has helped to transform the portfolios of many clients into leading industry assets.

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