Maximus divests Australia and South Korea operations, expects $100M impact

Maximus (MMS) announced it completed the divestiture of all operations in Australia and South Korea, which were reported under the Outside the U.S. segment. Primarily based around employment services, Maximus has operated in Australia since 2002 and in South Korea since 2020. With the transaction, over 1,200 employees are joining Angus Knight to enable a seamless transition of operations for the respective government customers. This sale follows prior divestitures of Maximus’ employment services operations in Sweden, Italy, Singapore, and Canada. The combined annual revenue run-rate for the two entities under Maximus was approximately $120M, while the estimated impact to fiscal year 2025 revenue guidance is approximately $100M. The transaction is estimated to be slightly accretive to fiscal year 2025 adjusted EBITDA margin and adjusted diluted EPS guidance, which exclude anticipated divestiture-related charges largely related to non-cash realized foreign exchange losses. For the full fiscal year 2025, the margin outlook improves for Outside the U.S. segment to between 3% and 5%.