Securitas acquires STANLEY Security's electronic security businesses in five countries
Securitas has announced the acquisition of STANLEY Security's electronic security businesses in Germany, Portugal, Switzerland, Singapore, and India for approximately MUSD 64 (MSEK 563). This move aims to double Securitas' electronic security operations and enhance its service capabilities. The acquired businesses generated total sales of MUSD 85 (MSEK 748) in 2019. Securitas expects acquisition-related costs of MSEK 60, primarily recognized in 2020 and 2021, with earnings per share projected to improve from 2022. The acquisition requires regulatory approval and is expected to close by Q4 2020.
- Acquisition valued at MUSD 64 is expected to significantly enhance Securitas' electronic security capabilities.
- The acquired business had total sales of MUSD 85 in 2019, indicating a strong revenue base.
- Expansion into key markets such as Singapore and India enhances Securitas' geographical reach.
- Expected EPS accretion from the acquisition starting in 2022 indicates potential growth for shareholders.
- Acquisition-related costs anticipated to be MSEK 60 may strain short-term financials.
STOCKHOLM, Sept. 28, 2020 /PRNewswire/ -- Securitas is acquiring STANLEY Security's electronic security businesses in Germany, Portugal, Switzerland, Singapore and India. The acquisition is aligned with Securitas' ambition to double the size of its security solutions & electronic security business and expands Securitas' electronic security footprint and capabilities. The purchase price is estimated to MUSD 64 (MSEK 563).
The entities to be acquired provide an integrated electronic security offering to their clients - from design to installation and from maintenance to alarm monitoring - based on a complete portfolio of advanced security solutions such as access control, intrusion, video, fire and integrated systems. The business has approximately 580 highly skilled employees operating in five countries through 20 branch offices out of which 11 are located in Germany.
The business also has two alarm monitoring centers, one in Germany and one in Portugal. Total sales of the in-scope business amounted to MUSD 85 (MSEK 748) in 2019, mainly driven from installation sales, recurring monthly revenue and maintenance services.
"We are very excited to welcome the electronic security specialists from STANLEY Security to Securitas. Through this acquisition, we add significant electronic security expertise and deepen our capabilities in Germany, Switzerland and Portugal, while also establishing our first electronic security presence in Singapore and India. This is an important step forward to deliver high-quality electronic security services to our clients in key markets," says Magnus Ahlqvist, Securitas President and CEO.
The acquisition-related costs are expected to be MSEK 60, some to be recognized in 2020 but mostly in 2021. The acquisition is expected to be EPS accretive as of 2022. The acquisition will require customary regulatory approvals and is expected to close during the fourth quarter of 2020.
This press release is available at www.securitas.com
Information:
Micaela Sjökvist
Head of IR, Securitas AB
mobile +46-76-116-7443 or email micaela.sjokvist@securitas.com
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SOURCE Securitas
FAQ
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