Diebold announced it has entered into an agreement 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.
Diebold announced it has entered into an agreement 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. Securitas, an US$8 billion Stockholm-based global provider of security services and solutions, has agreed to acquire the business in a transaction with a purchase price of $350 million. Ten percent of the price is contingent on successful transference of certain customer relationships to Securitas. The sale is subject to regulatory approvals, customary closing conditions and working capital adjustments, and is expected to be completed during the first quarter 2016.
Diebold announced it has entered into an agreement 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 two companies have also agreed to a strategic business alliance in which Securitas will serve as Diebold's preferred supplier for electronic security solutions in North America. 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.
"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 CEO 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 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.
Diebold is retaining all 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," says Alf Goransson, President and CEO of Securitas.
Diebold will provide transitional services to Securitas during the closing phase of the agreement to help ensure a smooth integration. Diebold's advisors for the transaction were Bank of America Merrill Lynch and Jones Day. Securitas was advised by K&L Gates.