Power tools and access control products maker Stanley Black & Decker announced on Monday that is has made an offer to acquire Swedish-based systems integrator Niscayah for $1.2 billion.
The bid is nearly $300 million greater than the one offered by guard services firm Securitas last month.
According to a statement, the acquisition would expand and compliment the company’s existing product offerings, as well as diversify its operations and international presence.
"Niscayah is a company we know well and is an ideal fit with our Convergent Security Solutions business as it brings complementary geographic strength and services, affords substantial synergies, strengthens our customer value proposition and enhances our growth potential in the highly attractive commercial security sector," Stanley Black and Decker President and CEO John F. Lundgren said in a statement.
An independent committee established by the board of directors of Niscayah has recommended that the company’s shareholders and warrant holders accept the offer.
"Based on Stanley's current assessment as set out in the announcement, the committee is of the opinion that Stanley's offer will not involve any material change for management and employees (including terms of employment) in the locations where the company conducts business," the committee said in a statement. "Niscayah notes Stanley's statement that following the completion of Stanley's offer, Stanley and the company's leadership team will develop the best structure going forward in order to maintain the company's identity with the employees and customers after completion."
Stanley said the transaction is expected to close in September.
