ES&S will sell voting systems it acquired

Omaha-based Election Systems & Software has agreed to the federal government’s demand that it sell voting systems it acquired in September by buying Premier Election Solutions Inc.

The Justice Department on Monday announced the divestiture plan, which is subject to approval by a federal judge in Washington. Nine state attorneys general joined the federal government’s suit.

“The proposed settlement will restore competition, provide a greater range of choices and create incentives to provide secure, accurate and reliable voting equipment systems now and in the future,” said Deputy Assistant Attorney General Molly S. Boast of the department’s antitrust division.

ES&S agreed to sell intellectual property associated with all versions of the Premier voting equipment systems to a buyer approved by the government. ES&S also must divest other Premier assets, including parts, and grant a purchaser a perpetual license to use Election Systems’ ballot marking device to assist disabled voters. The proposed settlement would be in effect for 10 years, the Justice Department said.

Before purchasing Premier, ES&S was the largest provider of voting systems in the United States, with machines installed in at least 41 states and revenue of $149.4 million in 2008, according to the Justice Department.

Allen, Texas-based Premier had been a subsidiary of Diebold Inc. and was the country’s second-largest provider of voting equipment systems, with machines in 33 states and revenue of about $88.3 million in 2008. Privately held Hart InterCivic Inc. sued Diebold in September, accusing the North Canton, Ohio, company of creating an illegal monopoly when it sold its electronic voting machine business to ES&S.

Election Systems & Software has “fully cooperated” with the Justice Department and has assured customers that it will honor all contractual obligations, company spokesman John Groh said.

The Omaha World-Herald Co. is a partial owner of ES&S.

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