Stanley Bids $1.2 billion for Niscayah
Stanley Black & Decker Inc., New Britain, Conn., and Niscayah, Stockholm, Sweden, a global provider and integrator of security solutions, both announced today that Stanley has made an offer to acquire the Swedish company. The bid represents a premium of approximately 23.8 percent over a previous bid made by Securitas, Stockholm, Sweden, on May 16, 2011.
The Niscayah business was a division of Securitas under the name Securitas Systems until 2008, when it was spun off and renamed. According to a Bloomberg report, Soeren Lontoft Hansen, an analyst with Sydbank A/S in Aabenraa, Denmark, noted there may be a counter-offer from Securitas as, “Niscayah is very good at IT security systems that Securitas is dependent on, and Securitas is Niscayah’s largest customer.”
Stanley’s offer of $1.2 billion is subject to customary conditions, though Stanley stated that the independent committee of Niscayah’s board, a group appointed by Niscayah’s board of directors to evaluate this and other potential offers, “has unanimously recommended that Niscayah shareholders and warrant holders accept the offer. Niscayah shareholders representing approximately 19.5 percent of Niscayah shares have committed to accept the offer under certain conditions.”
The acquisition would represent a significant global footprint expansion for Stanley’s Convergent Security Solutions business, the company said.
“Niscayah is a company we know well and is an ideal fit with our Convergent Security Solutions business as it brings complementary geographic strength and services, affords substantial synergies, strengthens our customer value proposition and enhances our growth potential in the highly attractive commercial security sector,” commented John F. Lundgren, president and chief executive officer of Stanley Black & Decker.
Stanley CSS and Niscayah are the No. 5 and No. 8 largest security integrators respectively, according to SDM’s soon-to-be-released 2011 Top Systems Integrators Report.
Stanley’s chief operating officer, James Loree, added during a conference call, “Further, it diversifies our business mix and improves our value proposition to customers by providing a global platform for customers who want to deal with one source of supply for their electronic security needs.”
The company also stated Niscayah’s integrated security solutions in video surveillance, access control, intrusion alarms and fire alarm systems, and its offerings in design and installation services, maintenance and repair, and monitoring systems would expand and complement Stanley Black & Decker’s existing security product offerings.
Niscayah recently introduced a dealer program, Insight 24/7, based on a video hosting service. Through InSight 24/7, dealers can offer their customers and prospects secure video surveillance with or without a video appliance storage device.
If approved, Stanley expects to complete the acquisition in September 2011.