Providence Service To Buy Ingeus

(RTTNews) - Providence Service Corp. (PRSC) said Monday that it has entered into an agreement to acquire Ingeus Ltd. for £35 million in cash payable at closing and restricted stock and cash with a combined value of about £14.3 million subject to a vesting schedule of four years.

To the extent certain thresholds and performance hurdles are met during the five-year period following closing of the transaction, Providence could also pay up to £75 million in the form of contingent earn-out payments.

Australia-based Ingeus has operations in 10 countries and four continents and is recognized as a pre-eminent distributed workforce development company and market leader in outsourced employability programs, operating in the social improvement, employment and welfare services markets. Ingeus generated revenue of £209 million for the twelve months ended December 31, 2013.

The Ingeus management team will be joining Providence and will continue to run the company's operations, bringing extensive experience in global government services to the Providence platform and a proven history of successful delivery. Ingeus' founder, Therese Rein, will continue to lead the business and will report directly to Providence's Chief Executive Officer, Warren Rustand.

The deal is anticipated to be accretive to earnings per share in 2014 and is expected to close in the second quarter of 2014.