Affiliated Computer Services Inc., attempting to capitalize on the outsourcing of services by state and local governments, agreed to acquire Lockheed Martin Corp.'s IMS subsidiary for $825 million, company executives said.</br></br>Both boards have approved the transaction, which is expected to be announced this morning.</br></br>The deal is the largest acquisition by ACS, a Dallas company with $2 billion in revenue and 21,000 employees that was founded in 1988 and has become a leader in business-process outsourcing, handling back-office operations from processing health-insurance claims to loan and mortgage transactions. The sale is expected to generate as much as $550 million for Lockheed, Bethesda, Md.</br></br>IMS, with 4,800 employees, gets its roughly $580 million in annual revenue by performing a number of tasks for municipal and state government agencies, including administering welfare benefits, tracking down deadbeat dads and snaring red-light runners with strategically placed cameras. The unit is best known for operating E-Zpass, the electronic toll-collection service used by vehicles in the Northeast.</br></br>The acquisition bolsters ACS's position vying for government contracts against International Business Machines Corp., Armonk, N.Y., and Electronic Data Systems Corp. of Plano, Texas. ACS gets about one-third of its revenue from the federal government but has been less competitive on state and local government work.