Garda Buys ATI Systems International for CA$395 Million

Canada's Garda World Security Corporation announced today that it will be acquiring ATI Systems International, a U.S. firm specializing in cash handling operations and physical security. The purchase price was $395 million in Canadian funds (approximately $340 million in U.S. dollars) plus assumption of some liabilities. The acquisition agreement has been approved by both companies' boards of directors and is expected to close before the end of April 2007.

ATI has roughly 7,000 employees, and provides cash handling in 35 states, as well as physical security in a number of locations across the U.S. ATI made a recent acquisition itself, with the purchase of CDC Systems, a top cash handling company in the New York metro area.

According to Garda, the acquisition of the California-based firm gives the combined company a higher percentage of national market share in cash handling. The move, said Garda, will give the post-acquisition Garda 18 percent of the U.S. cash handling market. Garda currently has about 15 percent of Canada's cash handling business.

The acquisition includes AT Systems Security, a TSA contractor with approximately 1,000 employees. AT Systems Security provides security screening services for the TSA and sees roughly $30 million (U.S.) in annual revenues.

ATI also owned the Ameriflight business, an air cargo airline. Aircraft owned by ATI for the Ameriflight operations will still be owned by ATI-Garda, and will be leased to the forthcoming separated Ameriflight business, which is being sold to a management and investment team.

ATI is currently a family-owned business, held by the Irvin family. Richard Irvin of ATI will remain with the combined business and will serve as the president of U.S.-based cash handling services for Garda.

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