Affiliated Computer says exclusivity agreement in effect with Deason, Cerberus

By Lisa Kerner

Charlotte, N.C., Aug. 10 - Affiliated Computer Services, Inc. said the March 20 exclusivity agreement between board chairman Darwin Deason and Cerberus Capital Management, LP is in effect and will expire on Nov. 14. Suspension of the agreement ended at 11:59 p.m. ET on Aug. 9, according to a company news release.

On March 20, Deason and Cerberus proposed acquiring Affiliated Computer for $59.25 per share in cash. The offer price was later increased to $62.00 per share in cash.

The company's special committee is in discussions with Deason, who is a 42% stockholder, and Cerberus to extend the suspension of the exclusivity agreement, due in part to credit market conditions. In addition, the committee continues to discuss strategic alternatives.

Under a June 10 waiver agreement, the special committee could consider a sale of Affiliated Computer and, in conjunction with Lazard Freres & Co. LLC, solicit interest from other companies between June 16 and Aug. 9. Deason was free to negotiate with parties other than Cerberus interested in a potential transaction during the same period.

Affiliated Computer Services, based in Dallas, provides business process outsourcing and information technology services.

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