Securitas acquires Stanley Security, the Electronic Security Solutions business from Stanley Black & Decker Inc. for a cash purchase price of US $3,200 million on a debt and cash free basis.
According to Reuters this will be the company’s biggest acquisition to date and essentially Securitas will be buying back a company that it originally floated on the Stockholm stock exchange in 2006 called Securitas Systems, then changed name to Niscayah in 2008, before Stanley Black & Decker acquried the company in 2011.
Stanley Security is a highly reputable provider of electronic security solutions with operations in 12 markets globally, expected to generate sales of nearly US $1,700 million in 2021, of which around 40% is recurring revenue.
Significant commercial synergy opportunities with over 500,000 existing as well as new clients, adds significant scale and innovation potential in the attractive US $70 billion electronic security market, and creates a leading platform to accelerate growth.
The acquisition is expected to complete in the first half year of 2022, subject to customary regulatory approvals and closing conditions
By acquiring Stanley Security, Securitas transforms the dynamics of the security industry by creating a unique combination of presence, connected technology and intelligent use of data. Securitas’ strategy is to deliver comprehensive, scalable, and innovative security solutions to meet its clients’ increasingly complex security needs. Stanley Security’s complementary offering of industry-leading tech-enabled security, together with complementary geographical coverage, is in perfect alignment with this ambition. The acquisition is a significant step towards Securitas achieving its ambition of doubling sales from higher margin security solutions and electronic security by 2023.
Together, Securitas and Stanley Security will benefit from a strong competitive position in commercial electronic security globally, creating more value for clients and unlocking growth as well as commercial opportunities from add-on sales, combined solutions, and outstanding innovation capabilities.
Headquartered in Indianapolis in the U.S., Stanley Security has a 30-year history of protecting its clients world-wide through an industry-leading portfolio of tech-enabled security services, ranging from alarm monitoring to systems integration, as well as a specialised healthcare offering. The acquisition perimeter includes commercial electronic security and healthcare solutions, where Stanley Security has deep expertise and an extensive innovation pipeline, but excludes door automation. Today, Stanley Security is one of the most recognised electronic security providers worldwide, with approximately 7,800 employees operating through approximately 200 locations and 16 monitoring centres in the U.S., Canada, Mexico, United Kingdom, France, Sweden, Belgium, the Netherlands, Denmark, Finland, Norway and Ireland.
“This means that Securitas becomes an exceptional player in the security industry. Together with Stanley Security, our largest acquisition in history, the profile of Securitas changes from a leading guarding company with electronic security and solutions capabilities, to a leading intelligent security solutions partner”, says Magnus Ahlqvist, President and CEO. “The future of security is built around the combination of global presence, connected technology and intelligent use of data and, together with Stanley Security, Securitas is perfectly placed to win in this environment. Together, our offering is cutting edge and we will be in an outstanding position to deliver safety and peace of mind to clients and communities around the world.”
Magnus Ahlqvist continues: “With our combined client proposition and our strong sales structure, we expect to deliver higher, more profitable growth than before. Going forward, 50% of our profit contribution will be generated through high-margin electronic security and solutions sales. This is in addition to the strong profitability focus that we are driving through our transformation programs and active portfolio management, which will also lead to a structurally higher margin profile in Securitas.“
“We are very excited to bring together these two iconic security companies, each with a rich history, a culture of success and with the client at the heart. We look forward to welcoming our new colleagues. The expanded competencies, expertise and leadership across the entire electronic security value chain globally, will serve our respective clients even better and significantly increase our competitive edge,” says Tony Byerly, President Global Electronic Security.