NORTH CANTON, Ohio, Feb. 1, 2016 /PRNewswire/ -- Diebold, Incorporated (NYSE: DBD) today announced it has completed the previously disclosed agreement to sell its North America-based electronic security business to Securitas AB. Securitas agreed to acquire the business from Diebold for a purchase price of approximately $350 million, 10 percent of which is contingent on the successful transfer of certain customer relationships to Securitas.
The acquired business will operate under the company name Securitas, with the brand transition from Diebold planned to be complete by the end of 2016. The companies also agreed to a strategic business alliance in which Securitas will serve as Diebold's preferred supplier for electronic security solutions in North America, and Diebold will be Securitas' preferred provider of ATM-related solutions and services.
In addition, as part of the transaction Diebold and Securitas have entered into a transition services agreement (TSA) to ensure a seamless customer experience. Effective immediately, the TSA period is 12 months and provides Securitas the ability to leverage existing Diebold services, systems and physical assets to fully support its customers during the transition.
"We are pleased to finalize the divestiture of our North America electronic security business, marking an important milestone in Diebold's transformation and allowing us to better focus our efforts and resources," said Andy W. Mattes, Diebold president and chief executive officer. "After having many customer meetings together with Securitas in recent weeks, we are very excited about what the future holds for our companies. I want to thank all 1,100 employees of Diebold Electronic Security and its leadership team for their continued dedication and commitment to our customers. This is also an important component of the financing for our pending business combination with Wincor Nixdorf."
Securitas is a global knowledge leader in security. From a broad range of services of specialized guarding, technology solutions and consulting and investigations, we customize offerings that are suited to the individual customer's needs, in order to deliver the most effective security solutions. Everywhere from small stores to airports, our 320,000 employees are making a difference.
More information on Securitas can be found at www.securitas.com.
Diebold, Incorporated (NYSE: DBD) provides the technology, software and services that connect people around the world with their money – bridging the physical and digital worlds of cash conveniently, securely and efficiently. Since its founding in 1859, Diebold has evolved to become a leading provider of exceptional self-service innovation, security and services to financial, commercial, retail and other markets.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements can generally be identified as forward-looking because they include words such as "believes," "anticipates," "expects," "could," "should" or words of similar meaning. Statements that describe the company's future plans, objectives or goals are also forward-looking statements. Forward-looking statements are subject to assumptions, risks and uncertainties that may cause actual results to differ materially from those contemplated by such forward-looking statements. The factors that may affect the company's results include, among others: the company's ability to realize any of the contingent purchase price consideration; the success of the company's strategic business alliance with Securitas; the impact of market and economic conditions on the financial services industry; the capacity of the company's technology to keep pace with a rapidly evolving marketplace; pricing and other actions by competitors; the impact of the company's strategic initiatives; and other factors included in the company's filings with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2014 and in other documents that the company files with the SEC. You should consider these factors carefully in evaluating forward-looking statements and are cautioned not to place undue reliance on such statements. The company assumes no obligation to update any forward-looking statements, which speak only as of the date of this press release.
SOURCE Diebold, Incorporated