Issue link: https://read.dmtmag.com/i/37034
SECURITY SYSTEMS NEWS AUGUST 2011 www.securitysystemsnews.com COMMERCIAL & SYSTEMS INTEGRATORS 15 Securitas extends time frame for offer By Martha Entwistle STOCKHOLM, Sweden—Securitas announced in July it had extend- ed the time frame for its offer to buy Niscayah from July 18 to August 12, but—despite rumors to the contrary—it will not raise its $907 million bid, Gisela Lind- strand, senior vice president corporate communications and STANLEY Continued from page 1 where we can offer end users a glob- al solution in many more regions.” Niscayah’s revenue is split up geographically in the following way: Nordic region-34 percent; rest of Europe-33 percent; United States-15 percent; France-9 per- cent; rest of world-9 percent. Asked about the integration of the two companies in North America, Bontranger said the bid represents a “great opportunity to bring two companies together in North America. We’re in markets in North America where Niscayah doesn’t have a physical presence and there’s an opportunity for us to pick up new markets as well. In addition, they have a presence in certain vertical markets, in par- ticular, financial services, where we do not have a large presence.” Similarly, Stanley CSS will help Niscayah to expand into verticals where it has a large presence, such as education, health care, retail, government and commercial/ industrial. Imperial Capital’s John Mack said the deal makes “strategic sense, as Stanley grows its pres- ence in the European market and its stated intention to grow the security business worldwide.” In addition, it should “be a good fit given the high recurring rev- enue component Niscayah would bring,” he said. Stanley expanded its security operations into the U.K. and France in recent years. Niscayah has annual revenue of $1 billion, according to Stanley, while Stanley’s CSS business does about $800 million, $300 million of which comes from its Europe- an operations. Stanley estimates it would achieve $80 million in annual cost savings as a result of the transaction, “more than half of which would be realized by the end of year one after closing.” The deal is expected to be “immediately accretive to Stan- ley Black & Decker earnings per share with accretion of USD $.20 in year one and USD 4.45 by year three,” according to a Stanley release. The deal is subject to anti-trust approval and other customary conditions. It is expected to close in September 2011, according to the Stanley statement. SSN Panasonic System Networks Company of America Surveillance, Monitoring & Video Imaging panasonic.com/security The new face of surveillance technology. Introducing i-PRO SmartHD. Panasonic i-PRO SmartHD™ cameras can instantly enhance and detect individuals’ faces the moment see more with your smartphone they step into your facility. Employing the latest innovations in HD face detection technology, i-PRO SmartHD cameras* seamlessly integrate with our NV200 NVR to match stored faces with real-time video, and alert you when unauthorized individuals come into view. They’re also ideal for visitor management applications and to identify frequent customers. Any way you view it, Panasonic i-PRO SmartHD cameras are changing the face of surveillance technology. *WV-SP306 supports face matching ideas for life public affairs told Security Sys- tems News on July 6. “When we set the first date we did not know how long the [European Commission anti- monopoly approval] filing would take,” she said. Securitas learned that the EC had until August 4 to issue approval, and it also want- ed to enable shareholders to see Securitas’ second quarter finan- cial result, which will be released on August 5. “So we decided to extend the offer for another week [beyond the August 5 release of the financial results.]” The Niscayah Board of Direc- tors had unanimously recom- mended that shareholders approve the rival $1.2 billion offer from Stanley Black & Decker. At press time, The Niscayah offer was set to commence on July 25 and expire on July 29. The decision to extend the time frame for the offer was unrelated to Stanley’s offer, Lindstrand said, emphasizing that Securitas has no intention of upping its offer. “We have done our homework ... this is the best offer we will give,” she said. Securitas wants to increase its in-house integration capabilities and Niscayah “is our prime target,” she said. If Secu- ritas does not succeed in acquir- ing Niscayah, “there are several smaller companies available on the market that we are looking at,” she said. SSN