Securitas Systems buys in Germany

STOCKHOLM--Securitas Systems, soon to be rebranded Nicscayah, has acquired German systems integrator G4S Sicherheitssysteme for roughly $16 million, boosting its position on continental Europe's largest security market and strengthening its service portfolio. G4S Sicherheitssysteme is one of the five biggest security systems companies in Germany, with 300 employees and 20 branches across the country. The company is focused on the banking, finance and retail sectors and posted sales of approximately $54 million in 2007, with service agreements accounting for around a third of the total. With this week's deal, Securitas Systems will double in size and become the biggest independent systems integrator in Germany, said Asa Larsson, head of communications and investor relations at Securitas Systems. "The acquisition will give us a better platform to grow from and it strengthens our service portfolio," she said, adding that it would particularly bolster the company's activities in the German banking and retail sectors. Explaining the rationale behind the sale, G4S spokesman Kevin Smith said it was in line with the announcement by the firm in early March of this year that it had begun divestment of its remaining businesses in France and Germany, since they were considered to be "sub-scale." The decision also stems from the new group strategy of focusing on long-term outsourcing. "The funds released will be used to bring additional capabilities into the group," said Smith. The deal, which must still win approval from German antitrust authorities, will leave Securitas Systems with 560 employees and approximate annual revenues of $102 million in Germany. The process for the sale of G4S's manned security business continues, Smith said, noting that Securitas, the former parent company of Securitas Systems, had expressed interest.