Just one month after Securitas Systems publicly expressed interested in purchasing the security systems operations of Germany's G4S, the deal has been closed. Securitas Systems has purchased G4S Sicherheitsysteme for 10 million Euros ($15.84 million US).
The buy gives Securitas Systems access to a massive play in Germany, with G4S Sicherheitssysteme already operating as one of the five largest companies providing security systems installation and integration in Germany. The purchase is expected to impact Securitas Systems' earnings positively for 2008; G4S Sicherheitssysteme saw annual sales in 2007 of 34 million Euros ($53.8 million), about one third of which was in the form of service agreements for existing systems. Combined the G4S German security systems group and Securitas Systems German operations brings in annual revenues of $64 million Euros ($101 million in USD).
G4S Sicherheitssysteme has focused heavily on the banking and financial markets, plus the German retail market, and operates 20 branch offices around the country, employing some 300 persons. Those operations will be consolidated into Securitas Systems in May 2008, though Securitas Systems was not specific about how that would affect offices where the two companies' operations overlapped.
"With the acquisition, we will be the number three player and the largest product independent systems integrator on the German market," said Securitas Systems president and CEO Juan Vallejo of the acquisition. "We will strengthen our service portfolio, reach critical volume and national coverage on the largest market in continental Europe."