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Diebold Agrees To Sell North America Electronic Security Business To Securitas

The following excerpt is from the company's SEC filing.

Divestiture accelerates Diebold’s transformation, enhancing focus on opportunities in dynamic self-service industry

Deal valued at approximately $350 million

Securitas to serve as Diebold’s preferred electronic security provider in North America, combining expertise and facilitating a smooth transition for Diebold customers

NORTH CANTON, Ohio - Diebold, Incorporated (NYSE: DBD) today announced it has entered into an agreement to divest its North America-based electronic security business to accelerate its transformation and better position the company to pursue growth opportunities in the dynam ic self-service industry. Securitas AB, an $8 billion Stockholm-based global provider of security services and solutions, has agreed to acquire the business in a transaction with a purchase price of $350 million. Ten percent of the price is contingent on successful transference of certain customer relationships to Securitas. The sale is subject to regulatory approvals, customary closing conditions and working capital adjustments, and is expected to be completed during the first quarter 2016.

The two companies have also agreed to a strategic business alliance in which Securitas will serve as Diebold’s preferred supplier for electronic security solutions in North America. This will help ensure a seamless transition for Diebold’s electronic security customers, as well as drive further security innovation and services for the industries in which both companies operate.

“Given the transformation that is occurring in the self-service industry, this strategic decision will enable us to accelerate our own transformation and focus on the exciting opportunities we’re seeing for growth and innovation in that market,” said Andy W. Mattes, Diebold president and chief executive officer.

“Over the years, we grew the electronic security business organically into one of the leading providers in the North America commercial and financial markets through innovative software and services,” Mattes continued. “As a highly capable global leader in the security industry, Securitas has the scale and resources to take electronic security to the next level for our customers. We also look forward to continuing the relationship with Securitas to provide compelling...