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SECURITY SYSTEMS NEWS JULY 2011 www.securitysystemsnews.com Will Securitas/Niscayah reunite? Continued from page 1 a $907 million public offer for Niscayah Group AB. Published reports say the offer is one Secu- ritas share for every 4.19 shares in Niscayah. The Wall Street Journal reported that “the acquisition is expected to be accretive to earnings per share from 2013, and [Securitas] esti- mates that the acquisition will cre- ate cost synergies of approximately SEK200 million annually. Securi- tas also said it expects restructur- ing costs to amount to SEK250 million in 2011 and 2012.” According to several reports, including one in the Wall Street Journal, Securitas CEO Alf Goransson said during a May press conference that divesting Niscayah was a mistake. In a May 4 statement, Gorans- son said: “We continue to pursue our strategy of specialization and segmentation, strengthening our capabilities in technology and added value tools and services, and to selectively make acquisitions in mature and new markets with the PEG Continued from page 17 network on a closer level, to talk about business strategy and challenges with peers who don’t compete and with the cover of a confidentiality agreement.” Yunag’s is one of three PSA PEGs. He describes his as an “extremely diverse group.” Members have different- sized companies, serve dif- ferent vertical markets and geographies and are of all ages. “And there’s a great variety of opinions,” he said. In putting together the group, there’s a careful vet- ting process to ensure that “there’s no stepping on toes.” This group meets four times a year. PSA provides a professional facilitator for meetings and members all sign a confidentiality agree- ment. The group has a con- stitution and votes on bylaws that govern the group. If members don’t show up at meetings or don’t participate, they’re out. “It’s a commit- ment,” Yunag said. Yunag said his group has been “almost invaluable” to his business since he’s been involved over the past year. Group members also stay in touch on an informal basis. “It’s like having a board of directors made up of eight guys in the security busi- ness who understand your challenges,” Yunag said. “It’s a tremendous concept.” SSN target to be present in approximate- ly 60 countries within three years.” He also acknowledged, in that statement, that contract losses “have been exceptionally high in the first quarter and are con- sequently causing a negative impact on the operating margin. Actions are taken to improve the situation, short term as well as in longer term.” Niscayah announced on May 16 that it has appointed an inde- pendent committee, consisting of board members Tomas Franzén, Eva Lindqvist and Håkan Kirstein, to evaluate the offer and make a fairness decision by July 4. Securitas has said that Nis- cayah’s largest shareholders— John Mack COMMERCIAL & SYSTEMS INTEGRATORS Latour, SakI and MSAB—support the offer, accord- ing to published reports. The deal would need shareholder approval. Should the deal go down, what would this mean for Niscayah’s North Ameri- can operations? Mack said that he “wouldn’t be surprised” if part of 19 the strategy is to invest significant- ly in growing Niscayah’s operations in North America.“Niscayah has wanted to create a bigger position for itself in the North American market for years. It’s made small regional acquisitions but hasn’t stepped up to do something of a bigger size,” he said. “I wouldn’t be surprised if part of Securitas’ vision is to make a more aggressive move to grow the North American part of the business.” SSN