Securitas acquires Supreme Security Systems in the US
Securitas is acquiring Supreme Security Systems, a leading US alarm monitoring company, for approximately MUSD 20. This strategic acquisition aims to enhance Securitas' service capabilities in the northeast US and is a part of their goal to double their security solutions business by 2023. With total annual sales of MUSD 10, Supreme Security's strong recurring revenue base constitutes over 70% of its revenue. The acquisition is anticipated to improve Securitas' operating margin and is expected to be accretive to EPS starting 2022.
- Enhances service capabilities and expands client offerings in northeast US.
- Strengthens recurring revenue base with over 70% of revenue coming from RMR.
- Projected to be EPS accretive as early as 2022.
- Aligns with strategy to double size of security solutions business by 2023.
- Acquisition-related costs expected to be MSEK 12 impacting 2022 and 2023 financials.
STOCKHOLM, Dec. 2, 2021 /PRNewswire/ -- Securitas is acquiring Supreme Security Systems, a top 50 alarm monitoring company in the US. The acquisition increases Securitas' service capabilities and client offerings in the northeast US and aligns with Securitas' ambition to double the size of its security solutions and electronic security business by 2023. The purchase price is approximately MUSD 20 (MSEK 180). The acquisition will be accretive to the Group operating margin through its resilient recurring monthly revenue (RMR) portfolio representing more than 70 percent of the revenue.
Founded in 1929, Supreme Security Systems provides security alarm monitoring services to clients primarily in the New Jersey market. Their portfolio includes electronic security services, such as intrusion, video, fire and access control systems, as well as UL-listed, FM approved, TMA Five Diamond certified alarm monitoring. The company has an outstanding reputation with its tenured client base and is known for providing best-in-class service. Total annual sales amount to approximately MUSD 10 (MSEK 90), mainly driven from its recurring monthly revenue (RMR) base.
"This acquisition strengthens Securitas' position as a leader in protective services and continues our journey towards our ambition to double the size of our security solutions and electronic security business. Supreme Security Systems' strong recurring revenue base complements our North American electronic security business model and enhances our footprint in a population dense strategic market," says Tony Byerly, President Global Electronic Security, Securitas AB.
The acquisition-related costs are expected to be MSEK 12, recognized across 2022 and 2023. The acquisition is expected to be EPS accretive as of 2022 and will be consolidated in Securitas as of December 1, 2021.
Further information:
Investors: Micaela Sjökvist, Head of Investor Relations; +46 76 116 7443, micaela.sjokvist@securitas.com
Media: Helena Andreas, SVP Communications & People, +46 10 470 30 20; press@securitas.com
Securitas is the world's leading intelligent protective services partner. Our guarding, electronic security, fire and safety, and risk management solutions enable more than 150,000 clients to see a different world. We are present in 48 markets and our innovative, data-driven approach makes us a trusted partner to many of the world's best-known companies. Our 355,000 employees live our values of integrity, vigilance and helpfulness, and our purpose is to help make your world a safer place.
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SOURCE Securitas
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