Mellon Financial Corp. is selling its HR outsourcing division to ACS for $445 million in cash, according to multiple news stories. ACS currently has about 50,000 people worldwide. Mellon's outsourcing group has about 4,000 people. The Mellon operation is the seventh largest in the US with about 3,000 clients, according to news coverage by AP. According to reporter Charles Sheehan, Mellon executives made the decision to get itself out of the business "to avoid the costs of upgrading the technology needed to compete and funnel more effort into core businesses." The deal is expected to be completed by the end of the second quarter of 2005.
Here's additional coverage:
The Mellon press release
http://biz.yahoo.com/prnews/050316/clw026_2.html
The ACS press release
http://biz.yahoo.com/prnews/050316/nyw055_3.html
For the next couple of weeks, you can tune into a recorded Webcast featuring executives from both companies talking about the agreement here:
www.mellon.com
