SoftBank Group is considering an acquisition of Allied Universal, a US security services provider backed by private equity firm Warburg Pincus and Canadian pension investor La Caisse, in a potential transaction that could value the business at close to $30bn including debt, according to Private Equity Wire. The proposed deal could give Allied an equity valuation of up to $18bn, according to Private Equity Wire. Allied also has approximately $12bn in publicly traded loans and bonds, according to Bloomberg data cited by Private Equity Wire.
Valuation framework and financing context
The potential transaction is described as valuing Allied Universal at close to $30bn including debt, according to Private Equity Wire. The same report states that the proposed deal could give Allied an equity valuation of up to $18bn. The company has approximately $12bn in publicly traded loans and bonds, according to Bloomberg data referenced by Private Equity Wire.
Status of discussions
Discussions remain preliminary, with no final decision on a transaction or its price having been made, according to Private Equity Wire. The report attributes the acquisition consideration to a Bloomberg report.
Allied Universal operations cited in the report
Allied Universal provides security personnel and specialist services across sectors including data centres, according to Private Equity Wire. Allied also provides facilities management and maintenance, according to the same report.
SoftBank’s stated strategic rationale and related investments
The potential acquisition would give SoftBank exposure to a major security services platform as founder Masayoshi Son seeks to expand the commercial deployment of artificial intelligence and robotics, according to Private Equity Wire. SoftBank is exploring ways to use autonomous robots for tasks such as patrols and event security, according to the report. Replacing human security staff at scale remains a longer-term ambition, according to Private Equity Wire.
The report says the move would build on SoftBank’s broader investment programme in AI and robotics. That broader programme is described as including SoftBank’s $5.4bn acquisition of ABB’s industrial robotics business and its investment in construction robotics company Gravis Robotics, according to Private Equity Wire.
Widely known context: SoftBank Group is a Japan-based technology and investment company. Widely known context: Warburg Pincus is a global private equity firm.
