Diebold Inc. has completed the previously disclosed agreement to sell its North America-based electronic security business to Securitas AB, and Tony Byerly has accepted Securitas’ offer to continue to serve as the leader of their new business. Diebold Electronic Security will now be known as Securitas Electronic Security (SES) and part of Securitas AB, an $8B global security services provider. The brand transition from Diebold is planned to be complete by the end of 2016.
"By combining (Diebold's) full portfolio of electronic security services with Securitas’ full portfolio of guarding and other security services, we solidify our position as the industry’s leader for protective services in North America," said Byerly – now President of Securitas Electronic Security Inc., in a statement. "This is truly transformative for the security industry, as Securitas customers can benefit from a full spectrum of security services – from on-site security officers to mobile guarding to remote guarding to alarm monitoring and systems integration, as well as other electronic security solutions – all through one partner."
As part of the transaction, Diebold and Securitas have entered into a transition services agreement (TSA) to ensure a seamless customer experience. Effective immediately, the TSA period is 12 months and provides Securitas the ability to leverage existing Diebold services, systems and physical assets to fully support its customers during the transition.
"With Securitas’ refreshing approach to this acquisition, our planning and actions will not focus on cost synergies, office closures and headcount reductions – it’s about growth, expanding the portfolio of security solutions available to customers and taking our business to the next level," Byerly said.
"I am truly blessed to have the opportunity to have my entire senior leadership team and all 1,100-plus electronic security associates throughout the U.S. and Canada join me on this journey," Byerly continued. "Each of our customers has my personal commitment that our entire team remains 100% dedicated to their ongoing support across all touchpoints including account management, installation, monitoring, service and billing. Although our name has changed, our security team, the account executives, service technicians, alarm operators and all others who support our customers have not.”
Securitas agreed to acquire the business from Diebold for a purchase price of approximately $350 million, 10 percent of which is contingent on the successful transfer of certain customer relationships to Securitas. The companies also agreed to a strategic business alliance in which Securitas will serve as Diebold's preferred supplier for electronic security solutions in North America, and Diebold will be Securitas' preferred provider of ATM-related solutions and services.
"We are pleased to finalize the divestiture of our North America electronic security business, marking an important milestone in Diebold's transformation and allowing us to better focus our efforts and resources," Andy W. Mattes, Diebold president and chief executive officer, said in a statement. "After having many customer meetings together with Securitas in recent weeks, we are very excited about what the future holds for our companies. I want to thank all 1,100 employees of Diebold Electronic Security and its leadership team for their continued dedication and commitment to our customers."
