Diebold announced it has completed the previously disclosed agreement to sell its North America-based electronic security business to Securitas.
Diebold announced it has completed the previously disclosed agreement to sell its North America-based electronic security business to Securitas. Securitas agreed to acquire the business from Diebold for a purchase price of approximately US$350 million, 10 percent of which is contingent on the successful transfer of certain customer relationships to Securitas.
The acquired business will operate under the company name Securitas, with the brand transition from Diebold planned to be complete by the end of 2016.
The acquired business will operate under the company name Securitas, with the brand transition from Diebold planned to be complete by the end of 2016. The 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, and Diebold will be Securitas’ preferred provider of ATM-related solutions and services.
In addition, as part of the transaction Diebold and Securitas have entered into a transition services agreement (TSA) to ensure a seamless customer experience. Effective immediately, the TSA period is 12 months and provides Securitas the ability to leverage existing Diebold services, systems and physical assets to fully support its customers during the transition.
“We are pleased to finalize the divestiture of our North America electronic security business, marking an important milestone in Diebold’s transformation and allowing us to better focus our efforts and resources,” said Andy W. Mattes, Diebold President and CEO. “After having many customer meetings together with Securitas in recent weeks, we are very excited about what the future holds for our companies. I want to thank all 1,100 employees of Diebold Electronic Security and its leadership team for their continued dedication and commitment to our customers. This is also an important component of the financing for our pending business combination with Wincor Nixdorf.”