acquisitions Acquisition fever hits security industry The consolidation of the security industry has continued over recent years. In this issue of detektor we have compiled the details of several acquisitions, made during the last 3 months (December 2016–February 2017), as a simple overview of the acquisition activity in the security industry. G4S sells off British and Israeli business G4S has completed the sale of G4S Utility Services, its UK multi-utility metering services business, to First Reserve, the majority shareholder in Morrison Utility Services Group, for £52 million paid in cash. G4S Utility Services comprises G4S Utility and Outsourcing Services (UK) Limited; G4S Assessment Services (UK) Limited; G4S Locks & Alarms (UK) Limited. G4S Israel has been sold to FIMI Opportunity Funds (FIMI) for an estimated net consideration of NIS425m (approximately £88m). FIMI is a premier Israeli private equity fund. G4S will retain a presence in Israel through ownership and continued investment in the flagship national police training centre Policity in partnership with FIMI and Shikun & Binui, a major Israeli infrastructure and real estate group. In the year to 2015, G4S Israel generated profit before taxation of around £8m and had estimated gross assets of around £56m. approval from the relevant authorities in the United States and certain other territories, among other conditions. ALSO acquires Internet Smartsec The IT product distributor Also has acquired Internet Smartsec. A Finnish importer and value-added distributor of security and network products. Its portfolio encompasses secure e-commerce solutions, VPN routers, user identification equipment, smart cards, encryption technology, IDS and filtering products, as well as various firewall devices. The company also provides consultation and training in data security and data networks. In 2016, Internet Smartsec’s net sales reached €4.5 million, a 61 per cent increase compared to the previous year. The company has eleven employees. Assa Abloy acquires in Poland and the US Southeastern Dock & Door , with 70 employees, is an industrial and commercial door and docking solutions distributor headquartered in South Carolina, now acquired by Assa Abloy. . Sales for 2017 are expected to reach USD 19 million. Assa Abloy has also acquired LOB in Poland, a producer of locks, cylinders and padlocks. LOB is headquartered in Leszno, Poland and has some 440 employees. Sales for 2017 are expected to reach some PLN 96 million. The transaction is conditional on regulatory approval and is expected to close during the second quarter of 2017.bloy and Head of the EMEA division. Allegion acquires Republic Doors & Frames Republic manufactures hollow metal doors and frames, complementing Allegion’s Steelcraft brand and core business in the Americas region. Republic generated approximately $20 million in net sales for 2015. Additionally, Republic’s footprint includes five regional service centres in Atlanta, Dallas, Orlando, Houston and Seattle that provide for faster servicing of local customers in these key markets. Republic’s president, Mike Taylor, will remain in a consulting capacity and focus on a smooth integration. Veracity acquires I-Comply I-Comply is a UK software provider of integrated command and control security solutions. The agreement includes all operational staff, software, intellectual property, on-going business and also I-Comply’s sales and support subsidiary in India. Veracity will maintain I-Comply as a separate business and will immediately expand its operations including an imminent move to larger premises near Leeds. The modular software solution supports a range of access control, CCTV, fire, alarm and other security equipment vendors, including Veracity, Bosch, Honeywell, Paxton, Axis, Hanwha Techwin and Milestone. Michael Gallagher will remain in charge of I-Comply business development and will also be responsible for running sales, support and operations for the business. Pinkerton merges with Seccredo The Swedish risk and security consulting service provider, Seccredo, has been acquired by Pinkerton, the global American risk management consulting company, However, both companies are fully owned subsidiaries of Securitas, so the deal is to be considered more as a merger between two sister companies. Jack Zahran, President at Pinkerton. GJd acquires Embsec technology GJD has signed an agreement to acquire from Embsec AB, a Swedish R&D house, all of their internet protocol and laser technology plus all related intellectual property rights. The IP technology will be integrated into GJD’s D-Tect detector and Clarius LED illuminator product ranges to provide automated and digitally connectable security solutions. The purchase of Embsec’s IP products, software and technology allows GJD to offer a fully integrated IP solution, with all products being manufactured in-house at GJD’s head office in Heywood, Greater Manchester. “This strategic acquisition will enable the company to substantially develop and EC clears Smiths acquisition of Morpho Further to the announcement last April that Safran had reached an agreement to sell Morpho Detection, to Smiths Group plc for an enterprise value of $710 million, Smiths has now confirmed that the European Commission has finally given clearance for the proposed acquisition which it was originally anticipated would be closed during the first quarter of 2017. In order to secure approval in Phase I of the EU merger review process, Smiths Group proposed the divestment of Morpho Detection’s explosive trace detection business. This divestment is conditional on the successful closing of Smiths Group’s acquisition of Morpho Detection and on the European Commission’s approval of the purchaser of the Trace business as a suitable purchaser. Completion of the acquisition of Morpho Detection by Smiths Group remains conditional upon Mark Tibbenham, GJD (right) and Erik Lindstein, Embsec shake hands. Security News Every Day – www. securityworldhotel.com 8 • d etektor internati onal