STOCKHOLM, Oct. 25, 2015 /PRNewswire/ -- Securitas has
agreed to acquire the commercial contracts and operational assets
of Diebold Incorporated's (NYSE-DBD) Electronic Security business
in North America, and will operate
as Securitas Electronic Security Inc. The 12-month sales of the
acquired Diebold Electronic Security operation, from June 30, 2014 through June
30, 2015, are MSEK 2 760 (MUSD 330). The purchase price is
approximately MSEK 2 900 (MUSD 350) on a debt-free basis including
a normalized working capital, which according to Securitas'
calculations equates to approximately 11x estimated EBITDA for
2015, of the acquired operation after it has been separated
from Diebold Incorporated. The acquisition will be accretive to
Securitas earnings per share as of 2016.
Diebold´s North American Electronic Security business, based in
Green, Ohio, USA, is the third
largest commercial electronic security provider in North America. For more than 70 years,
Diebold´s North American Electronic Security business has brought
together technology innovations, security expertise and quality
services to become a leading provider of comprehensive electronic
security solutions and services to business customers. Today the
operation delivers a full spectrum of capabilities including
design, build, integration, installation, monitoring and service
providing compelling value propositions to customers. The
monitoring services include intrusion alarms, fire alarms and
sprinklers, and monitoring of elevators. Diebold´s North American
Electronic Security business has approximately 1 100
employees. The operation includes more than 55 000 monitored
customer locations and 200 000 sites serviced.
Securitas' worldwide strategy is to increase security solutions
and technology as a part of the offering. Over the past four years,
Securitas has strengthened its technological know-how and continued
recruiting specialists. In an increasingly demanding security
market, Securitas knows that the decisive factor will be having a
critical mass of knowledge and the ability to create innovative
solutions that provide greater benefits for customers. To support
the global strategy, in addition to making substantial investments
in organically building strong competences, some key acquisitions
have been made over the past four years. In 2014, Securitas
acquired the Belgian security and critical communications systems
integrator SAIT, and 24 percent of the shares in the US remote
video services company Iverify. The acquisition of Diebold's
Electronic Security business in North
America will strengthen this corporate strategy.
Securitas and Diebold believe that this deal is to the benefit
of both parties. Securitas and Diebold will do their utmost
to make the transaction a success, guarantee continuity and develop
customer services and relationships. Securitas will serve as
Diebold's preferred supplier for electronic security
solutions. This will help ensure a seamless transition for
Diebold's electronic security customers, as well as drive further
security innovation and services for the industries in which both
companies operate.
Alf Goransson, President and CEO,
Securitas AB, says that this acquisition supports Securitas' global
strategy and strengthens Securitas' position as the global
knowledge leader in security solutions and technology.
"During the past years, we have focused on strengthening our
technological expertise and come far to become the leading security
solutions company. Securitas is at the forefront of the
transformation of the security industry and we receive proof of
this every day, in our interaction with existing and potential
customers. With the acquisition of Diebold's North American
Electronic Security business, we will be able to further accelerate
our development", says Alf
Goransson,
"Over the years, we have organically grown our electronic
security business to become a leading provider of broad, innovative
solutions - leveraging our industry-leading software and services -
in the commercial and financial markets throughout the United States and Canada. As a
highly capable global leader in the security industry, Securitas
has the scale and resources to take this business to the next level
for its customers. We also look forward to continuing the
relationship with Securitas as our preferred provider of electronic
security to provide compelling expertise that further leverages our
combined capabilities in services and security moving forward. This
will enable a smooth transition for customers and employees
alike. Given the transformation that is occurring in the
banking industry, this strategic decision will enable us to
accelerate our own transformation and focus on the exciting
opportunities we're seeing for growth and innovation in that
market," says Andy W. Mattes,
President and CEO, Diebold
Incorporated.
Tony Byerly, who has led
Diebold's global electronic security business for the past three
and a half years, will continue to lead the electronic security
business as President and report to Santiago Galaz, Divisional President Securitas
Security Services North America. Santiago
Galaz says in a comment to the acquisition:
"We welcome Tony and his entire team to Securitas.
Securitas Electronic Security - previously Diebold Electronic
Security - will continue to be a leader in the North American
electronic security industry. With this acquisition, we will
have the ability to increase our security solutions sales, while
also being an active player in the technology market, which will
bring added value to our customers and make our offer much
stronger. We also believe that we can leverage Diebold's electronic
security expertise to Securitas' existing customer base and offer
our customers possibilities of protective services by optimizing
the equation between different service components." says
Santiago Galaz.
The financing of the acquisition of Diebold's North American
electronic security business is in place in the existing Revolving
Credit Facility. The one-off costs for separating the Diebold
Electronic Security operation from Diebold Incorporated together
with the transaction costs will amount to approximately MSEK 60
(MUSD 7) and will be recognized in 2016.
The acquisition is subject to regulatory approval. Closing of
the acquisition is expected during first quarter of 2016, from
which point it will be consolidated in Securitas.
This press release is also available at: www.securitas.com
SPECIAL NOTE: Please refer to the Diebold's
press release titled "Diebold agrees to sell North American
Electronic Security business to Securitas", also issued today, for
related information.
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SOURCE Securitas AB