G4S has Agreed to be Acquired by Allied Universal as part of a $5 Billion Deal Between the Two Companies

G4S has Agreed to be Acquired by Allied Universal as part of a $5 Billion Deal Between the Two Companies

$5B deal brings six-month long bidding war for company to a close

After initially declining an Allied Universal $4.2 billion deal last month, G4S has announced that it has agreed to the terms of a new cash offer from the company that will pay G4S shareholders $3.30 per share.

The offer, which was made by Atlas UK Bidco Limited (Allied Bidco), a newly incorporated entity created for the purposes of implementing the offer and indirectly controlled by Allied Universal, values G4S at £3.8 billion ($5 billion). The combination of Allied Universal and G4S will create a combined business that is expected to generate approximately $18 billion in annual revenues. The company will also have a global workforce of more than 750,000 people with operations in 85 countries.

“The G4S Board is confident in the long-term prospects of the business and believes this offer represents an excellent opportunity to create a leading global security company, for shareholders to realize value for their investment at an attractive premium, while also ensuring the future success of G4S for employees, customers and other stakeholders. We are therefore unanimously recommending it to our shareholders,” said John Connolly, chairman of the G4S board.

“Our businesses know each other well, we share a similar culture and values, and I am excited about what the combination of Allied Universal and G4S can deliver,” added Steve Jones, president and CEO of Allied Universal.  “G4S has an excellent service offering, an enviable global customer portfolio and it is led by a highly experienced management team. We have been impressed by the recent transformation of G4S which alongside our successful acquisition track record, underpins our confidence of ensuring a seamless integration of the two businesses. Combined, we will have over 100 years of industry experience and a more extensive global network in terms of people, customers and capabilities.”

The acceptance of the offer ends a nearly six-month long bidding war for G4S, which began in mid-June when Canada-based GardaWard (Garda) offered to buy the company for $1.95 per share. Garda would subsequently revise its offer twice over the next several months, eventually agreeing to pay $3.8 billion for the company but that too was rejected.

Having been rebuffed by the G4S board, Garda would appeal directly to the company’s shareholders as part of hostile takeover bid in October, offering to pay $2.56 per share. Allied Universal entered the fray last month and offered to buy G4S for £3.25 billion ($4.22 billion) but that offer also fell short of what G4S leaders were looking for.

Prior to accepting the most recent offer from Allied Universal, G4S noted in a statement announcing the deal that earlier this month, Garda, through its wholly-owned subsidiary Fleming Capital Securities, upped its offer to $3.16 per share but noted that it would not increase it any further. As of Dec. 1, 2020, Fleming had received acceptances of the Garda offer in respect to nearly 27 million G4S shares, representing approximately 1.73% of the company’s issued share capital.

Allied Universal intends to maintain a headquarters in London that will serve as the “Enlarged Group’s” headquarters for all international operations outside of the North America. In addition, based on the geographic footprints of G4S and Allied Universal, the companies said in the statement that they do not expect there to be a significant number of overlapping functions outside of North America.

Allied Bidco has also reportedly already cleared U.S. anti-trust review and the company is currently in the process of acquiring all other antitrust and regulatory approvals. The deal is expected to close during the first quarter of 2021.  

Featured

  • Integration Imagination: The Future of Connected Operations

    Security teams that collaborate cross-functionally and apply imagination and creativity to envision and design their ideal integrated ecosystem will have the biggest upside to corporate security and operational benefits. Read Now

  • Smarter Access Starts with Flexibility

    Today’s workplaces are undergoing a rapid evolution, driven by hybrid work models, emerging smart technologies, and flexible work schedules. To keep pace with growing workplace demands, buildings are becoming more dynamic – capable of adapting to how people move, work, and interact in real-time. Read Now

  • Trends Keeping an Eye on Business Decisions

    Today, AI continues to transform the way data is used to make important business decisions. AI and the cloud together are redefining how video surveillance systems are being used to simulate human intelligence by combining data analysis, prediction, and process automation with minimal human intervention. Many organizations are upgrading their surveillance systems to reap the benefits of technologies like AI and cloud applications. Read Now

  • The Future is Happening Outside the Cloud

    For years, the cloud has captivated the physical security industry. And for good reason. Remote access, elastic scalability and simplified maintenance reshaped how we think about deploying and managing systems. But as the number of cameras grows and resolutions push from HD to 4K and beyond, the cloud’s limits are becoming unavoidable. Bandwidth bottlenecks. Latency lags. Rising storage costs. These are not abstract concerns. Read Now

  • Right-Wing Activist Charlie Kirk Dies After Utah Valley University Shooting

    Charlie Kirk, a popular conservative activist and founder of Turning Point USA, died Wednesday after being shot during an on-campus event at Utah Valley University in Orem, Utah Read Now

New Products

  • PE80 Series

    PE80 Series by SARGENT / ED4000/PED5000 Series by Corbin Russwin

    ASSA ABLOY, a global leader in access solutions, has announced the launch of two next generation exit devices from long-standing leaders in the premium exit device market: the PE80 Series by SARGENT and the PED4000/PED5000 Series by Corbin Russwin. These new exit devices boast industry-first features that are specifically designed to provide enhanced safety, security and convenience, setting new standards for exit solutions. The SARGENT PE80 and Corbin Russwin PED4000/PED5000 Series exit devices are engineered to meet the ever-evolving needs of modern buildings. Featuring the high strength, security and durability that ASSA ABLOY is known for, the new exit devices deliver several innovative, industry-first features in addition to elegant design finishes for every opening.

  • EasyGate SPT and SPD

    EasyGate SPT SPD

    Security solutions do not have to be ordinary, let alone unattractive. Having renewed their best-selling speed gates, Cominfo has once again demonstrated their Art of Security philosophy in practice — and confirmed their position as an industry-leading manufacturers of premium speed gates and turnstiles.

  • Connect ONE’s powerful cloud-hosted management platform provides the means to tailor lockdowns and emergency mass notifications throughout a facility – while simultaneously alerting occupants to hazards or next steps, like evacuation.

    Connect ONE®

    Connect ONE’s powerful cloud-hosted management platform provides the means to tailor lockdowns and emergency mass notifications throughout a facility – while simultaneously alerting occupants to hazards or next steps, like evacuation.