Diebold, Incorporated has 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 AB, an $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. 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.
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.
“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,” said Andy W. Mattes, Diebold president and chief executive officer. “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.”
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. 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 Securitas AB.