SoftBank in talks to acquire security giant Allied Universal
What's the story
SoftBank Group is in early-stage talks to acquire Allied Universal, one of the world's largest private-security firms. The potential deal, if finalized, could value Allied at as much as $18 billion (excluding debt), sources familiar with the matter told Bloomberg. The move comes as part of SoftBank's continued investment strategy focusing on artificial intelligence (AI) and robotics in the workplace.
Company profile
Allied Universal's operations and AI integration
Allied Universal, backed by US-based buyout firm Warburg Pincus and Canadian pension fund La Caisse, operates in more than 100 countries and territories.
The company provides armed and unarmed security guards as well as various security technology across industries. It generates about $23 billion in annual revenue.
Notably, Allied Universal has also been integrating AI into its offerings with tools that provide real-time data collection, incident tracking, and GPS tracking to enhance safety for clients.
Investment focus
Shift in SoftBank's investment strategy toward AI
SoftBank, led by Japanese billionaire Masayoshi Son, has shifted its investment strategy from a mix of start-ups to a singular focus on AI.
The company has already invested $64 billion in OpenAI and is planning a fleet of data centers. It also owns chip company Arm and robotics.
Last year, SoftBank acquired the industrial robotics-focused business of Swiss engineering giant ABB for $5.4 billion to explore the potential of combining AI with robots.
Market expansion
Allied Universal's growth trajectory and investor returns
Allied Universal has seen significant growth in recent years, especially after its merger with US rival AlliedBarton Security Services.
The company was valued at over $7 billion when Canadian pension fund La Caisse bought an undisclosed stake in the newly formed entity.
In 2021, Allied Universal went global by acquiring the UK's G4S for about £3.8 billion ($5.1 billion today).
If the deal with SoftBank goes through, it could mean a major payday for investors Warburg Pincus and La Caisse.