EDS Closes Saber Purchase

EDS (NYSE: EDS) has completed its acquisition of a 93% stake in Saber Holdings Inc. from sellers like majority shareholder Accel-KKR, for approximately $420 million in cash. Saber provides software and services to U.S. state governments, and its CEO and COO retained the other 7 percent.



Accel-KKR, a technology-focused private equity investment firm, today announced the closing of the sale of its controlling equity stake in Saber Corp., a privately-held leading provider of software and services to U.S. state governments, to EDS (NYSE: EDS), a publicly-traded global technology services company. 


Accel-KKR first purchased its controlling stake in Saber in December 2005 from the company's founders, Chief Executive Officer Nitin Khanna and President and Chief Operating Officer Karan Khanna.  Accel-KKR worked closely with Saber's founders to build the company into a national leader in providing software and services to state and local governments.  This included expansion of the company's product and service offerings platform, geographical footprint, and customer base.  Following Accel-KKR's acquisition of its equity stake in the company, Saber Corp. doubled its revenues and operating profit during 2006, and again in 2007. 


As part of its expansion plan for Saber Corp., Accel-KKR worked closely with the company to achieve growth both organically and through an acquisition strategy.  This included, in May 2006, after six months of ownership, Accel-KKR's investment of additional capital in Saber to finance the acquisition, turnaround and successful integration of the assets of the State and Local Government Practice of Covansys Corporation.


Nitin Khanna, who will continue as CEO of Saber said, “We could not have chosen a better partner in building Saber into a market leader than Accel-KKR.  From originating and financing add-on acquisitions, to providing valuable counsel on key strategic, tactical and operational decisions, Accel-KKR has demonstrated tremendous expertise in bringing our company forward to its next stage of development.  As part of EDS, we will augment our current capabilities with the products, services, assets and talents of one of the world's leading technology services enterprises.”


Rob Palumbo, a Managing Director of Accel-KKR, said, “We are delighted to have had the opportunity to work with Nitin and Karan Khanna and their senior management team in building Saber into one of the world's fastest-growing providers of software products and services that enable state and local governments to better serve citizens.” 


Ben Bisconti, also a Managing Director of Accel-KKR, added “The successful completion of this transaction is consistent with our ongoing track record of partnering closely with the management teams of growth technology companies to help them take their business to the next level and create real value for customers, employees and shareholders.  We are excited for Nitin, Karan and their team and their prospects for continuing to build their business as part of EDS.”


Goldman Sachs served as financial advisor to Saber in this transaction.  Kirkland & Ellis served as legal advisors to both Saber and Accel-KKR in this transaction.




About Accel-KKR

Accel-KKR is a technology-focused private equity firm that invests primarily in technology businesses with $15 million to $150 million in revenue that are well positioned for top-line and bottom-line growth.  At the core of Accel-KKR's investment strategy is a commitment to developing strong partnerships with the management teams of its portfolio companies and a focus on building value through the contribution of unique financial, strategic, technical, and operational resources. 


Accel-KKR has a particular focus on the following transactions:  Recapitalizations of family-owned or closely-held private companies, divisional buyouts of larger companies, and going-private transactions.  For more information, please visit www.accel-kkr.com.


About Saber

Saber, founded in 1997, is headquartered in Portland, OR. The privately held company has deep customer relationships with state and local government entities across the country, providing software and services that underpin essential functions such as voter registration, election management, public retirement programs, human services, public health services, motor vehicles, unemployment insurance, and forms and document processing. For more information, please visit www.sabercorp.com.


About EDS
EDS (NYSE: EDS) is a leading global technology services company delivering business solutions to its clients. EDS founded the information technology outsourcing industry 45 years ago. Today, EDS delivers a broad portfolio of information technology and business process outsourcing services to clients in the manufacturing, financial services, healthcare, communications, energy, transportation, and consumer and retail industries and to governments around the world. Learn more at www.eds.com.