Diebold To Sell North America Electronic Security Unit To Securitas For $350 Mln

(RTTNews) - ATM machines provider Diebold Inc. (DBD) said Sunday that it has entered into an agreement to divest its North America-based electronic security business to Securitas AB (SCTBF.PK) for about $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.

Securitas AB is an $8 billion Stockholm-based global provider of security services and solutions.

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.

Diebold's electronic security business in North America includes a full portfolio of intrusion, fire, video, access control and systems integration services, as well as monitoring, maintenance and other security-related services for commercial and financial markets. Revenue for this business was approximately $330 million from June 30, 2014 to June 30, 2015. Diebold is retaining all its physical and consumer transaction security businesses related to its core financial market, including automated teller machine security, anti-fraud card solutions, bank branch facility and drive-up systems, and related services.

DBD closed Friday's trading at $36.86, up $1.10 or 3.08%.