Securitas has agreed to purchase Diebold's US-based Electronic Security business, leading to the formation of the new Securitas Electronic Security group.
On Sunday, the Swedish firm announced the acquisition of the North American business, which includes commercial contracts and assets in order to form Securitas Electronic Security.
The deal, agreed for $350 million with a 10 percent caveat depending on the transfer of client contracts to Securitas, gives Securitas a stronger backbone when it comes to technology.
Securitas provides manned security services ranging from bodyguards to dogs and consulting for small, local establishments to global organizations. However, beyond surveillance cameras, the company has little to offer in the terms of modern, tech-based security solutions.
By acquiring Diebold's unit, Securitas will gain a portfolio of intrusion, fire, video, access control, monitoring and maintenance technology for both the commercial and financial markets.
According to Diebold, the portfolio generated sales worth approximately $330 million from June 2014 to June 2015.
Diebold says the company will retain all its physical and consumer transaction security businesses, but the deal will allow the firm to concentrate on the self-service industry.
Andy Mattes, President and CEO of Diebold commented:
"Over the years, we have organically grown our electronic security business to become a leading provider of broad, innovative solutions - leveraging our industry-leading software and services -- in the commercial and financial markets throughout the United States and Canada.
Given the transformation that is occurring in the banking industry, this strategic decision will enable us to accelerate our own transformation and focus on the exciting opportunities we're seeing for growth and innovation in that market."
Alf Goransson, CEO of Securitas, said the deal will "accelerate the development" of Securitas' technological expertise and strength.
As noted by Reuters, news of the deal shot up the Swedish firm's shares by four percent.
Last year, Securitas purchased security and critical communications firm SAIT, increasing the company's presence in Belgium.
The deal is expected to close during the first quarter of 2016.
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