Reston’s Maximus to buy a General Dynamics business unit

WASHINGTON — Reston, Virginia-based Maximus, one of the largest administrators of government-sponsored programs, including Medicaid and Medicare and child welfare programs, will acquire General Dynamics Information Technology’s citizen-engagement centers in the U.S. for $400 million.

GDIT contracts with the federal government to operate centers that handle government services inquiries and management.

The all-cash transaction is expected to close in mid-November.

“As a leader in business process management and the delivery of citizen services, Maximus is strengthening its position with some of the largest mission-critical federal civilian programs,” Maximus CEO Bruce Caswell said.

“This deal aligns with our digital modernization strategy and we remain keenly focused on improving the citizen experience for critical government programs.”

The General Dynamics Information Technology citizen-engagement centers business has annual revenue of about $670 million.

Maximus, whose government services customers are in the U.S., Australia, Canada, Saudi Arabia, Singapore and the U.K., has about $4.5 billion in annual revenue.

Jeff Clabaugh

Jeff Clabaugh has spent 20 years covering the Washington region's economy and financial markets for WTOP as part of a partnership with the Washington Business Journal, and officially joined the WTOP newsroom staff in January 2016.

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