Securitas Acquires Stanley Security For $3.2 Billion

By John Honovich, Published Dec 08, 2021, 10:19am EST (Info+)

Securitas has made what it claims to be a "transformative" acquisition that "will be at the center of [its] strategy for years to come" in acquiring Stanley's Electronic Security business for $3.2 billion USD.

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Inside this report, we examine the Investor's Deck and detailed commentary from the hour-plus investor's call to see what problems Securitas is trying to solve and how this impacts the broader security integration market.

Executive *******

********* ** ****** ** ********* *** massive ******** ***** ******** (***,***+ *********) from *** ****** ****** (~*%), *** revenue ******, *** *************** *** ****** valuation (*.** ****** *****) **** **** it ***** **** ****** * "****** in ************ ********".

** ** ****, ********* ** ****** a ******** ******* *** *******'* ********** security ******** (****** ** ****** *****) but *** ******* ******, **** ****** Stanley ***** & ****** (***** **** division *** ** *******), ********* **** make ********** ******** *** ****** ** their ****-**** ********.

**** ** **** ** * ******* trend ** ******** ***** ********* *********** the ***** ** ***** **** ******** and ********** ** ******* ** * technology-focused ********.

Deck *** ****

************'* **-**** *********** ********** *-**** **** ********'* ******* ******* *** *** ***** *** our ******** *****.

Guards ** ***********

********* **** *********** (*.*., ********** ********) to **** ************* ****** ******* (*.*., OPM) *** ********** ****** ****** **** guards, ** **** ******* **** *** deck *****:

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********* ********** *** ****-***** **** **** only * **** ***** **** ** the *********** ****** ******** ** "******" companies, ** ********* *****:

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********* ****** "****** ** *******" ********* "JCI/Tyco, ******* ********, ***/***** **** & Safety, ******* *** ********* **", ******* omitting **********.

***** ******* *********** ** ********* **** though *** ** *** ********** ** how **** ****** ******* *** **** at *** ******* ** ***** / national ****. ***** **** *********** ****** global ******* ** ******* **** ********, local ******* ***** **** *** ********* of ***** **** ********** ** ******* and ***-**** *******.

***** *** ***** *** ***** ***** about ********, ********* *** ***** ** focus ** ***** * ****** ** intelligent ******** ** ***** *****:

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**** **** ***********, ******, **** * revenue *********** ********* **** ***** ** roughly **% * ******** ******* *** only * ******** ********** ***. ** course, ***** *** ********* *** ********* growth ***** ** ***** **********, ********* may *** *** ** ********* * technology ********.

Stanley's ******** ***

*** ******** ** *******'* ******* ** from ***** ******* *** *********** **** is **** ********* *******:

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Valuation ** *******

*** * ****** **********/************, *** ********* Securitas **** ($*.* ******* ****, ****** 2x ** * ~$*.* ******* ********) was ******. *********** ********** **** ******** are ****** ** ~** ***** ** lower.

********* *** *******'* ******** ******* * relatively **** ********** ** ********* *******, its ********** ***** ***** (***** ** quite ********), *** ***** *** ******* (in *** **% *****). ********, ** a ********* ********, ********* *** ********** various ************, **** **** *** ***********.

*** *******, *** ******* ***** ********** that ********* *** ******** *** ******** Stanley ******** ~*,*** *********** *** ~*,*** salespeople ** **** / ***** **** from ***** ******** **********.

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Parts ******* *******

****** *** **** *********** ********, *** deal **** ******** * ****** ** their ******* ********* ********* *******, ********, Pacom, *** ********, ** ***** *****:

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*** ********** **** ****** ** *** company's ******** *********** ** *****, ******, etc. *** *** **** ** ******* nor **** ****.

Total ********* ********** ******** **** $* *******

********* **** **** **** *** **** a ~$* ******* ********** ******** ********, more **** ******** **** ***** ******** business ** **** ****:

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**** ** *** ****** ********* / Stanley **** ** * *****, ************* ******** $** ******* *** ** 2020 *** *******'*********** ******** ******** ** *******, ********, Switzerland, *********, *** *****.

Tuck ** *** *** ************** ************

********* ******* ****** ****-** ************ ** this ***** *** *** ************** **** (like ****), **** *** ******* ** the ********'* ****.

Explaining *** ***** ****

********* ******** *** ***** **** ** an ******* **** *** ********* ******** in *** ********'* ****:

***** ** * ************** ***** *** other ********** *******

***** ****** *** **** ********* **** 10 ***** ***

************* ********** ********* **** *** *********** with ****

****** ***** ** **** **** **** enabled

*******

***** *** ******** ***** ****** *** a **** **** ** ******* ********* this ******, ****-***** ********* **** ** find **** ***** *** ** ***** their ********** ***** *******. ******* ** not ********* **** * ******* *** this ****, *** **** **** ******* Securitas *** ********* ** ******* **** from ******** ** *********** *** **********, a ***** *** *** *** ******.

Comments (33)

***. ** ********** **** **** ********* was **** ****.

********* ***** ******** **** ** *** our ******* *****'* **** ******** ***** them *** ******.

** *** ******* ********, * **** use **** **** ***** ** ** other ****** *** ********** ******** ********.

*'* *** **** *** **** ******** anything *** ****** ****.

Agree: 13
Disagree: 2
Informative: 11
Unhelpful
Funny

*** ***** **** "********", ** *** disagree **** ** ******** ********** ** that ** *****'* ******* ******** *** either ****?

** **** ** *** ****** ** you ******'* ******** **** ******** ***** my ******** **********.

Agree: 3
Disagree
Informative
Unhelpful
Funny: 1

* ***'* **** *** ** *** they ***** ** ********, ** ***** generally ** **** **** **** *** positive *********** **** *******. * ***'* have ****** ********** **** ******* ** strongly **** * ***** ** ****.

Agree
Disagree
Informative
Unhelpful
Funny

** ********** ** ******* ** *****. But ************ ***** *********. ** **** reap *** ******** ** **** * believe **** ** *** ******** ********* (even *******, ** ****'* ********) ******* and *******. ** *** *** ***** when ******* *** *** **.

Agree: 2
Disagree
Informative: 1
Unhelpful
Funny

**** **** *** *** ****** ********** List ** ****** *********/***, **?

Agree: 1
Disagree
Informative
Unhelpful
Funny: 1

#*, *** *** ** ****** *********/***'* integration ********? ** ***** ******* *******, they *** **** ****** **** ********* but **'* *** ***** ** ** if ****** / *** *** ***** in **** ** ********* ** ********** security ***.

Agree
Disagree
Informative
Unhelpful
Funny

****'* * ***** ******** ****. *'* not ***% ****. **** ** $.**, prior ** *** ******* *********** * would **** **** **** ********* *********** was ******* ** ** *** **** G4S ***** ** *** **** **** is *** ****** **** ** ** the ******/*** *********** *** *'* *** it ** ********** ****** ***. **** before ******* ****** ********, ******* *** pretty ***.

Agree
Disagree
Informative
Unhelpful
Funny

** ****, **** ** *** ****** info ****** ** *** **** ** the ******** ********* **** *** ********** offerings ********* *** ***** **% ** revenue - ******* ****** *** *% link ***** ** *** *******.

*******: ****** *********'* *********** ** *** a **** ** '********' *********** | Security **** *****

Agree
Disagree
Informative: 1
Unhelpful
Funny

#*, ****** **** ******* ** ** the ***** *********. **** ******* **** "****** **% ** ***’* ******* ***** from **** ***** ** ********** *********". The **** ***** ** * ****** flag ** ** *** ** ****** look ******* **** ***'* *** *************.

***'* ***** **** *** **** ** "technology ******* ********", *.*. ****** **** ********'* ****:

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**** *** **************** ***** ********** ** **** ****:

********** **********-******* ********* *** ********* **** combinetwo ** **** **: ******** *************, **** **********, ********** *** **** *** ************. These integrated technology-enabled solutions account for around half of the Group’s security revenues. [emphasis added]

*** **** **** *****, **** *****, gives **** ***** ***** *** **** define ****:

***/***, * ** ********* **** ****** half ** ***'* ******* ** **** actual ****** **********, *.*., ********, **** services, ** *********** ********. *** *******, based ** ***'* ~$*-** ******* *******, that ***** **** *** ***** ** doing $*+ ******* ** **********.

***** ** ***** *** **********, **** include ****** (*.*., ******** *************) ** "technology ******* ********" ** **** ** they *** ********* ****** **** **** consulting ** * ****** ** * door ******, ***.

**** ********* **** ****** ************ **** to ********* *** ***** ******* **** guards ** **** ** *** *** become **** *********** / **** ** a ***********. ******* ******* ** **** is **** ** *** ****** **** for ***** *********? **** ** **** to ******* ******* ******** *** ***** bundled **** ******* (***** ****, ********) and ***** ******** (***** ****** *** Verkada). *** ** *** ****** ******* just *** ******* *** ********* ** do *** ******* *** ****** ******** cost (***** ***** ******* *** ****** size, ***.)?

Agree
Disagree
Informative
Unhelpful
Funny

****, **** *********** ***** *** **** up **** ** **********. **** ******* any ******** **** *** ***** ** technology ** * ********** ********. ** 3 ***** ** ***** ******* + 1 ****** *** **'* ********** *******.

**** * ** ***********, *** *********** group ***** ****** **** ******* ** a *** *** ******* (***/**/*******) ** boutique/whale ******** ** *** **** *-** years. ******** **** **** * ***, it ****'* **** ********* **** ******* countries ***** ***** **% ** ******* as ** ****.

Agree
Disagree
Informative: 1
Unhelpful
Funny

*** ***'* **** *** ******* *********** report, **** *** $**** *** *** had $**** ** ******* *********** *******, putting *** *** ******** ** ********* around $****.

**** *** ******* *********** ****** ******** | *** ********

Agree
Disagree
Informative
Unhelpful
Funny

** *** ******** ***** **** **** spun *** **** ********* **** ****** by ******* **** ** **** ** Securitas. **** ** **** ** **** don't **** ******** **** *** ***** looking ******** ***** ******** **** ***** not *** ***!

Agree: 3
Disagree
Informative: 1
Unhelpful
Funny: 8

** ******* ****** *** *****?

Agree
Disagree
Informative
Unhelpful
Funny: 5

** ******* ****** *** *****?

**** ** ***'** ***** **** **

Agree
Disagree
Informative
Unhelpful
Funny: 1

* ****** ******* ******** ********* ********* the ********* ** *** ******** **** about ****:

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Agree: 1
Disagree
Informative: 8
Unhelpful
Funny

****** * ********** ******** **** *** their ***** ******* ******** ******** **** a **** ** ********* **** *** service. **** ***** ***** *********** *** integrators **** *** ********* ** ***** accounts ** **** *** **********. **** will ****.

Agree: 3
Disagree
Informative: 1
Unhelpful
Funny

** * ***** ****** ***-****, * can **** *** ** *****'* ****** to **** ** **.

**** ** ** ******* ***** ** more ********* *** ********. ** ****, many ***** ********* **** *********** ******** that ******* ******** *********.

*** ******** *** ******* ***** ** many ******* ********* ********** ********* **** internal ********* **************, **********, ***************, ****** location, ****** ** ********* *********** ** staff, ********, ******* *****, *** ******* of *** ********, *** ******* ******* level **********.

* ***** ***** ***** * ******* to ** ********** ****** ******* **** are ********** *** ***** ********. ** I ***** ** ******* ********* ** guard ********, **** ***** ***** *** an ********** ******** *******.

Agree: 4
Disagree
Informative: 3
Unhelpful
Funny

***** ******* ***** ******** ***** ********* is ********* *** ** *** **** common ******* ****** **** ***** *********. How ********* *** ***** ********* *********? Do ***** ********* ********* ***** / respect ***** ***** *********?

Agree
Disagree
Informative: 1
Unhelpful
Funny

***** *** *** **** ****** *** imagine **** ** **** *** ********** in **% ** ***** ******** **** introducing *** *********** *******, **** ***** would ****** ** *********** *******. ****, its *** **** **** *** ******** from ******* ** ******** ** ** integration ********, **** *** ******** ** the ***** * ****** *** ********** name. **** ***** **** **** *** path * *** ********. ** **** worked **** ******* ******** *** ****-******** traditional **** ******** ********* (*********, ***********..) and **** **** **** ******** **** good *******. * *** **** ** is ******** ********* ******* ** *** electronic ****** ** **** ********* *** still ** ********* ********.

Agree
Disagree
Informative
Unhelpful
Funny

********** ** **% ** ***** ******** base *********** *** *********** *******, **** alone ***** ****** ** *********** *******

****, * **** ***'* **** ** it's **% ** *.*%, ***.

***** ** ***** *** ** ******* way. *** *******, ** ********* ***** two ****** *** ** ********, *** does *** ***, **********, ***/****, ***. buy ***** *********? ***** ********* **** much ***** ********** ** ** ****** be ****** ** ** ****. ** they *** ***, ** **** **** a **** ** *********** ** *** part ** *** ***** *********?

** ** *****, * ** *** sure *** * ***'* **** ****** here *** ** ****** *** ********** or *********** **** ***** **** ******* this *** **, * ***** ********** it.

Agree
Disagree
Informative: 1
Unhelpful
Funny

****,

* ***** *** *** **** **. I ***** ***** ********* *** ****** ground ** *** ******** *********. ** security ******* **** *** **** **********-***** the **** *** ****** ** ******* smaller. ** *** **** *** *** guard ********* ** **** ** ** to *** **** *** ********** ******** realm.

Agree: 3
Disagree
Informative
Unhelpful
Funny

** ******** ******* **** *** **** technology-based *** **** *** ****** ** getting *******.

* *** *******. *** **** ** to ******* ********** ***** ***** **** technology ******** ********. **** *** ** done **** * ***** ******* ********** program, ****** *******, *** ***** **** minimal ***** ***** *** ****** *** monitoring.

Agree: 1
Disagree
Informative: 1
Unhelpful
Funny

*'** ***** ****** *** **** ********, the *** ***** ***** *** ** that * *****'* **** *** ** the ***** ********* *** ***** *********** services ** ********** ****** ** ** that **** **** * ********** ****** of ******* **** *** ***********.

**'* **** ****** **** *** *********** are ****** ******* **** **** *** guard ********* ** ********* *********** ***** at ******** *** ****** ** ****** on * ****. **** *** *** JCI **** **** ****** ***** **** robotics ** ** *******. *'* ******* to *** **** *** ***** *** looking ** ******** **** ** ***** technology ** ****** ***** ****** *** a ****.

Agree
Disagree
Informative
Unhelpful
Funny

*'** ***** ****** *** **** ********, the *** ***** ***** *** ** that * *****'* **** *** ** the ***** ********* *** ***** *********** services ** ********** ****** ** ** that **** **** * ********** ****** of ******* **** *** ***********.

*** *** **** *** *** ***** too **** ****** * ******* *** size ** ******* **** * **** track ****** ** ********** *****.

Agree
Disagree
Informative
Unhelpful
Funny

**** **** * **** ****, * sale *** *** ** *******'* ******** units ****'* **** ************ ******* **** another. ** * ***** # ** cases, **** **** * *** ** least ** *** ** **** *** technology **** ******** ** **** ** guard *******. ** ***** ** *** guard **** ** *** ******** **** more ********* ** **** **** ***** on *** ********** ****. *** ******* environment ***** ********* *** ******* ** downsize ***** ***** ****** ***** **** even **** ****.

*** **** ***** ******** ****, *** given **** ********* ****** **** *** have * **** ********** ** *** guard ********, **'* *** ****** **** they **** ** **** ** ******** their ****** ***** ********* **** ********** sales, ** **** ** *** ***** here **** **** ** ********.

***** **** ** **** **** ** SI *********** *** *** *********** ***** is **** ** ******** ******* ****** as *** ***** ***** ********* ** sink ****** ****. **** **** ***** be ******* ******** ****** ******, *** the ***** ***** ** ***** ***** to ** * *********** ******.

Agree: 1
Disagree
Informative: 1
Unhelpful
Funny

** ***** ********* ********* ***** / respect ***** ***** *********

**** ***'*. **'* ********* ** ********* trust **** *** ******** ** ** high.

*** ******* ************* **** ***** ******** is ***** ****'** ***** ** ***** your ********, **** ********* **** ** protect ********** **** ***** ***** (********, time, ***.), ******* **********.

**** ****.

Agree: 3
Disagree
Informative: 2
Unhelpful
Funny: 1

**'* ****** ***** ** ****** ** how **** **** ******* ** ****. That *** ***'* **** ****** ****** Adesta *** ** ** ***** ****** they **** ****** ** ****** **** continually ****** ** ******** **** **** on **** *******, **** **** *** projects ******** ******* *** ******** *****.

*** ********* ** **** ******* *** SI ******** **** **** ****** *** into *** ***** ******** ******** ** depending ** *** *** ********* *** organization *** *** *** ** **** competition ******* ******** ***** ** ** the **** ***** **** ********* ** proactively **** *** *********** ******** ** the ***** ****.

Agree
Disagree
Informative
Unhelpful
Funny

** - ***** **** ** *** a *** ****** ?

* ***** **** *** *** ***** is ****** **% *** *** ** guards (** **) & * ********** agree **** *********** *** **** #* - *** *** * ***** **** works ** *** **** ***** ****** maybe *** *** ************* ***** ***** is * ******** *** *** ******** & ***.

** *** **** **** ****** ***** tec ******** ** *** ******** ******* provider - *** ***** ****? ****** it *** ******* - ***** ** not ****** ****** ** ******** ** take * *** ** **** *** tec *******.

**** ** *** **** ***** - not *** **********'* *** ******** **** all (*** *******) *** ********* - the ***** *** *** ********** ********. Sites **** ****** **** ** ** larger *****, ***** **** ******** ********** - ** *** * **** **** to ****** *** *** ***** *** the ********** *** ****?

*** * ******** * *** ** colleagues ** *** ******** ***** **** it ** *********.

** * ****** ** * *** client ** ** ********** ******* - it ***** **** ***** *** ***** way, ** **** *** ******** **** the **** ********? - **** *** margin ** *** *** *** ** used ** **** *** ******** *********** more ********** ** ** *** ******

Agree
Disagree
Informative
Unhelpful
Funny

** *** *********** **** *** ****** to ******* *** ******* ********* **** Stanley ********** (****** **********, ****** **********, Inventory **********, ***** ****, ****, ***.).

*** ****** *******?

Agree
Disagree
Informative: 2
Unhelpful
Funny

***** ******** ** ******** *********** ******** units **** *** **** *********** ********, so ** ******'* ** ********** ** it ****'* **** ** *** ****. However, ** ** ****'*, **** ***** almost ********* **** ******* **** ** buying **** ******** ****, ******* ** doesn't **** ***** ** * ********** entity **** *** **** ** *** product *** **** ******* *** *******.

Agree
Disagree
Informative
Unhelpful
Funny

*** *** *****, *** **** ****** think *** *** *******/************/***** ** ****** non ***% *******(****/*********, ***) ********* ** last *-** ** *** **** *** industry? **** ******? **** ****? **** anecdotally * *** ** ***** ****** in ******** ** *** ******. **’* kind ** * ***** ****.. ** maybe * **** *** ************* *** different **********/*****?

Agree: 1
Disagree
Informative
Unhelpful
Funny

*********** ******* * *** ******* ** a ********* *** ***** *** ***** how **** *** **** *** ****** is ***** ** *** ********. ***** it's **** ** ****** ****** **** is ******** *** * **** ******* a *** *** ***** *** ******* younger ** ***** ** *** *** metro ****** ***** ** ***** * am ***** *** **. * ***** older *********** ****** ******* *** ******** opens ** ************* *** ***** *****. Verkada ** ********* *** ** "***" culture *** **** *** ******* ******. I ***** ** **** **** ** wait *** *** *** *** ****** in *** ******** ********, *** ** me ** ***** **** ** *** seeing * ***** ********...

Agree
Disagree
Informative
Unhelpful
Funny

* **** *** ***** **** *** purchased. * ****** *** ********* **** have * ***** ******* **** ** Hikvision ** ***** *** ***** ******* a *******. * ***** ***** **** it ***** **** ***** *********.

Agree
Disagree
Informative
Unhelpful
Funny
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