Diebold Bought by Securitas for $350 Million
The acquisition includes a strategic business alliance to ensure Securitas will be Diebold’s main security solutions provider in North America.
Diebold announced on Sunday it has been acquired by Swedish manned security company Securitas for approximately $350 million.
Diebold said the agreement will allow the company to divest its North America-based electronic security business to accelerate its transformation and better position the company to pursue growth opportunities in the dynamic self-service industry.
The sale is subject to regulatory approvals, customary closing conditions and working capital adjustments, and is expected to be completed during the first quarter of 2016.
Diebold was Campus Safety magazine’s sister company SSI’s 2015 Installer of the Year.
The two companies also agreed to a strategic business alliance in which Securitas will serve as Diebold’s preferred supplier for electronic security solutions in North America.
“Given the transformation that is occurring in the self-service 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,” said Andy W. Mattes, president and chief executive officer of Diebold.
“Over the years, we grew the electronic security business organically into one of the leading providers in the North America commercial and financial markets through innovative software and services,” Mattes continued. “As a highly capable global leader in the security industry, Securitas has the scale and resources to take electronic security to the next level for our customers. We also look forward to continuing the relationship with Securitas to provide compelling expertise that further leverages our combined capabilities in services and security moving forward. This will enable a smooth transition for our customers and employees alike.”
Diebold’s electronic security business in North America includes a full portfolio of intrusion, fire, video, access control and systems integration services, as well as monitoring, maintenance and other security-related services for commercial and financial markets. Revenue for this business was approximately $330 million from June 30, 2014 to June 30, 2015. Diebold is retaining all of its physical and consumer transaction security businesses related to its core financial market, including automated teller machine security, anti-fraud card solutions, bank branch facility and drive-up systems and related services.
“The acquisition of Diebold’s electronic security business supports Securitas’s global strategy and substantially strengthens our position as the global knowledge leader in security solutions and technology. Securitas Electronic Security – previously Diebold Electronic Security – will continue to be a leader in the North American electronic security industry. We also plan for the North America headquarters of the electronic security business and its employees to remain based in Green, Ohio. We believe that we can leverage Diebold’s electronic security expertise to the existing Securitas’ customer base and offer our customers possibilities of security solutions by optimizing the equation between different services,” said Alf Goransson, president and CEO Securitas.