Maximus announced on Tuesday the company has completed the acquisition of privately held Veterans Evaluation Services (VES). The agreement was previously announced in April 2021. This acquisition was the next step in Maximus’ long-term strategy and positions the company for the future.
“Through this combination, Maximus and VES will serve as a credible, established partner to the VA, add clinical capacity for clients, and offer innovation to benefit Veterans and the Veterans Benefits Administration,” commented Bruce Caswell, Maximus president and CEO.
“I am proud to welcome our newest colleagues to Maximus. Together, we will support our nation’s Veterans and help address the employment and health needs of service members and their families,” added 2021 Wash100 Award recipient Caswell.
VES is a provider of Medical Disability Examinations (MDEs) for the Department of Veterans Affairs (VA). The acquisition enables Maximus to grow its clinical assessment business at the federal level. It also positions Maximus as the leading provider of health and disability assessments and appeals on behalf of the government.
Maximus funded the acquisition through new debt sources consisting of a $1.1 billion Term Loan A (TLA) due in 2026 and a $400 million Term Loan B (TLB) due in 2028. The company estimates the acquisition will be between $160 and $175 million for the last four months of Maximus’ fiscal year.