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.  


  • Cloud Adoption Gives Way to Hybrid Deployments

    Cloud adoption is growing at an astonishing rate, with Gartner forecasting that worldwide public cloud end-user spending will approach $600 billion by the end of this year—an increase of more than 21% over 2022. McKinsey believes that number could eclipse $1 trillion by the end of the decade, further underscoring the industry’s exponential growth. Read Now

  • AI on the Edge

    Discussions about the merits (or misgivings) around AI (artificial intelligence) are everywhere. In fact, you’d be hard-pressed to find an article or product literature without mention of it in our industry. If you’re not using AI by now in some capacity, congratulations may be in order since most people are using it in some form daily even without realizing it. Read Now

  • Securing the Future

    In an increasingly turbulent world, chief security officers (CSOs) are facing a multitude of challenges that threaten the stability of businesses worldwide. Read Now

    • Guard Services
  • Security Entrances Move to Center Stage

    Most organizations want to show a friendly face to the public. In today’s world, however, the need to keep people safe and secure has become a prime directive when designing and building facilities of all kinds. Fortunately, there is no need to construct a fortress-like entry that provides that high level of security. Today’s secured entry solutions make it possible to create a welcoming, attractive look and feel at the entry without compromising security. It is for this reason that security entrances have moved to the mainstream. Read Now

Featured Cybersecurity

New Products

  • 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. 3

  • Mobile Safe Shield

    Mobile Safe Shield

    SafeWood Designs, Inc., a manufacturer of patented bullet resistant products, is excited to announce the launch of the Mobile Safe Shield. The Mobile Safe Shield is a moveable bullet resistant shield that provides protection in the event of an assailant and supplies cover in the event of an active shooter. With a heavy-duty steel frame, quality castor wheels, and bullet resistant core, the Mobile Safe Shield is a perfect addition to any guard station, security desks, courthouses, police stations, schools, office spaces and more. The Mobile Safe Shield is incredibly customizable. Bullet resistant materials are available in UL 752 Levels 1 through 8 and include glass, white board, tack board, veneer, and plastic laminate. Flexibility in bullet resistant materials allows for the Mobile Safe Shield to blend more with current interior décor for a seamless design aesthetic. Optional custom paint colors are also available for the steel frame. 3

  • Camden CV-7600 High Security Card Readers

    Camden CV-7600 High Security Card Readers

    Camden Door Controls has relaunched its CV-7600 card readers in response to growing market demand for a more secure alternative to standard proximity credentials that can be easily cloned. CV-7600 readers support MIFARE DESFire EV1 & EV2 encryption technology credentials, making them virtually clone-proof and highly secure. 3