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Outsourcer Keane Confirms It Will Be Bought By Caritor
Keane told the SEC that it has reached an agreement with Caritor, also an outsourcing vendor, to be acquired for about $854 million in cash
Paul McDougall, InformationWeek
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Technology outsourcer Keane filed documents Friday with a regulatory agency confirming its previously announced plans to be acquired by Caritor.

In papers filed with the Securities and Exchange Commission, Keane confirmed that it has reached an agreement with Caritor, also an outsourcing vendor, to be acquired for about $854 million in cash.

On Wednesday, Keane reported that fourth quarter net income increased 11% to $11.3 million. The results prompted an upgrade to “market perform” from “underperform” by analysts at Friedman Billings Ramsey.

Keane’s buyout follows a year of turmoil and executive turnover at the outsourcer, whose customers include Countrywide Financial, CSX Technology and Tufts Health Plan.

Last month, Keane announced that Kirk Arnold, 47, would assume the CEO post vacated in March 2006 by Brian Keane. Keane, the son of the company’s founder, resigned after he was accused of sexual harassment by two female employees. Keane denied the charges but said in a statement at the time that he had exercised “poor judgment.”

Following Brian Keane’s departure, the company formed a three-person leadership team. One of those executives, Richard Garnick, was fired in September for what the company said were problems with his travel expenses and “unauthorized communications inconsistent with the company’s interests.”

Garnick has since sued Keane for wrongful dismissal.

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