DALLAS, Oct. 6 - Affiliated Computer Services, Inc. (NYSE: ACS), a premier provider of business process outsourcing and information technology solutions, announced today that it has been awarded an additional business process outsourcing (BPO) contract with Wachovia Education Finance, the sixth largest originator and the fourth largest holder of education loans in the U.S. The 5-year contract is valued at $35 million.
ACS has been providing a full spectrum of student loan servicing and consolidation processing solutions for Wachovia Education Finance for more than 10 years. Under the terms of the additional contract, ACS adds approximately 208,000 borrower accounts totaling $1.6 billion in outstanding loans. ACS' new business under this contract also includes the transfer of more than 84,000 Wachovia Consolidation loans to ACS, an additional loan value totaling approximately $2 billion in outstanding loans.
"ACS has worked diligently with us to support our student loan business," said Doris Grose, President, Wachovia Education Finance. "They have provided creative strategic input which has been valuable in helping us achieve our business objectives, and they continuously look for ways to enhance the overall quality of service. We are confident that by expanding our relationship with ACS, Wachovia Education Finance will also expand the scope of superior service we provide to our borrowers."
ACS will provide servicing from its education service centers in Long Beach, California, and Utica, New York. The loan types that ACS will handle under this contract are Stafford, PLUS, Alternative or Private, and Consolidation loans.
"This contract is a significant win for ACS on many levels," said Steven Snyder, Managing Director of ACS Vertical Markets. "It represents ACS' largest single new business win in education loan servicing, and it underscores one of the major attributes that sets ACS apart in this industry -- we are a partner, not a competitor, to our clients."
Snyder said that while other BPO providers compete with their clients for loan assets, ACS is the only service provider focused exclusively on loan origination and servicing. "ACS does not make, acquire, or otherwise hold student loan assets," Snyder said. "Our independent status ensures that lenders receive the most competitive loan sale premiums and that schools and students receive premium service and cutting-edge tools to simplify loan management and repayment."
Established in 1984 as "Educaid," Wachovia Education Finance (Wachovia Corporation (NYSE: WB)) is the 4th largest holder and 6th largest originator of education loans in the United States, and does business with over 4,000 schools in all 50 states and in U.S. territories. In addition to the corporate office in Rancho Cordova, California, the company also has regional offices in Florida, Texas, Ohio, and Delaware. More information can be obtained by visiting educaid.com .
ACS, a FORTUNE 500 company with more than 50,000 people supporting client operations in nearly 100 countries, provides business process and information technology outsourcing solutions to world-class commercial and government clients. The company's Class A common stock trades on the New York Stock Exchange under the symbol "ACS". ACS makes technology work. Visit ACS on the Internet at http://www.acs-inc.com .
The statements in this news release that do not directly relate to historical facts constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to numerous risks and uncertainties, many of which are outside the Company's control. As such, no assurance can be given that the actual events and results will not be materially different than the anticipated results described in the forward-looking statements. Factors could cause actual results to differ materially from such forward-looking statements. For a description of these factors, see the Company's prior filings with the Securities and Exchange Commission, including our most recent filing. ACS disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future event, or otherwise.
