International. The acquisition environment in the security industry for the first quarter of 2018 remains hot as Securitas Electronic Security (SES) announced an agreement to purchase the Kratos Public Safety and Security division of Kratos Defense & Security Solutions, Inc.
In a roughly $70 million deal, Securitas officials say the move aligns well with its current operations and strategic focus. It also expands its security platform in the United States by strengthening field operation capabilities and adding local branch infrastructure with highly skilled employees.
For Tony Byerly, president of Securitas Electronic Security (SES), the acquisition of Kratos PSS signals an "exciting moment" for both the parent company and SES, noting that he expects the transaction to close in the second quarter pending regulatory approval.
"KPSS is an ideal acquisition for Securitas as it supports Securitas' global electronic security strategy and strengthens the company's electronic security platform. In addition, it is an important next step in the execution of Securitas' North American strategy to provide a full range of protection services to the company's collective customer base. For SES, it expands our domestic presence in the U.S., adds highly skilled partners to the team, and opens up new markets and opportunities for future growth," says Byerly.
In addition to its traditional security technologies including enterprise-level implementations of video surveillance, access control, audio/messaging, and perimeter detection, Kratos PSS also offers rapidly evolving technologies such as digital video analytics, LAN/WAN convergence, and wireless solutions. Their mastery of converged security and IT services enables them to deliver solutions that support the current and emerging needs of their customer base. The operation has annual sales of approximately US$135 million and includes 400 employees.
It is this mix of technological expertise and broad customer base that Byerly finds attractive with this acquisition.
"As most of the industry knows, KPSS has a rich history of quality service, integration expertise, branded customers and large iconic projects. The company relied on a number of acquisitions, including highly regarded companies such as Henry Brothers and Ingersoll Rand Security Technologies. Combining KPSS with SES creates a truly dynamic system integrator
