Government services provider Maximus announced that it has completed the acquisition of privately held Veterans Evaluation Services, Inc. The agreement was previously announced on April 21.
VES is a premier provider of Medical Disability Examinations to the U.S. Department of Veterans Affairs. VES’ expertise creates an opportunity for Maximus to grow its independent clinical assessments business at the federal level, while expanding its presence in the VA, the company said.
“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,” said President and CEO Bruce Caswell.
“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,” Caswell said.
The purchase price was funded through new debt sources for the company consisting of a $1.1 billion Term Loan A due in 2026 and a $400 million Term Loan B due in 2028. Pricing on the TLA is initially set at LIBOR+175 and the TLB is LIBOR+200, with a 0.5% Libor floor and an original issue discount of 99.5. The Company also refinanced its existing $400 million corporate credit facility and replaced it with a new $600 million facility available through 2026.