UPDATED - Stanley Convergent Security Solutions (Stanley CSS), Naperville, Ill., announced the completion of its parent company’s (Stanley Black & Decker) acquisition of Niscayah, Stockholm, Sweden. Following the completion of the acquisition on Sep. 9, Stanley and Niscayah’s leadership will develop the best structure going forward in order to maintain the company’s commitment to being the industry’s gold standard, the company said.
“The completion of our acquisition of Niscayah is an important step in both the ongoing expansion of one of our key growth platforms — Convergent Security Solutions (CSS) — and the diversification of the company’s operations and international presence,” said John F. Lundgren, president and chief executive officer of Stanley black & Decker. “The addition of Niscayah to CSS enhances our ability to serve our customers by giving us expanded product offerings and a wider geographic footprint in the highly attractive commercial security sector. We are pleased to have completed this transaction, which we expect to result in substantial synergies and be meaningfully accretive, and now look forward to proceeding with the integration process.”
Stanley Black & Decker expects the transaction to result in annual cost savings of approximately USD$80 million, more than half of which would be realized by the end of year one after closing. The acquisition was funded with Stanley Black & Decker’s existing offshore cash resources with no additional debt or equity issuances.
Niscayah had sales of SEK 6.6 billion in 2010 and provides integrated security solutions, video surveillance and access control systems, fire and security systems and monitoring services to commercial, industrial, government, local, national and global customers throughout Europe and the United States.
“We are excited to welcome Niscayah’s customers and associates to Stanley,” said Brett Bontrager, senior vice president and group executive, Stanley Security Solutions. “This acquisition demonstrates Stanley's continued pursuit of its stated strategic goals to continue expanding and developing our global Security platform. Niscayah will add scale to our North American business as well as expand our presence into 12-plus countries/regions where we currently do not have a Security Solutions presence.”
The acquisition comes after Stanley Black & Decker offered to purchase Niscayah for $1.2 billion in cash on June 27, 2011. Shortly after Stanley announced its intent to purchase Niscayah, the Independent Committee of the board of directors of Niscayah released a statement that unanimously recommended that shareholders and warrant holders accept the public offer made by Stanley Black & Decker.
Niscayah employs more than 5,000 associates in Europe and the United States and services both residential and commercial customers. Niscayah’s current commercial customer markets include banks, retail, gas stations, utilities, transport and lodging and public sector companies.
“Niscayah will be a perfect fit for Stanley in that its strategic vision is very similar to ours, and their operations offer both recurring revenue opportunity and a complementary geographical fit,” continued Bontrager. “The addition of Niscayah to the Security Solutions platform will benefit our customers tremendously by our expanded ability to serve their needs in multiple regions as a truly global provider of security solutions. The addition also creates exciting new growth opportunities for our employees and broadens our experience in the security arena.”
Find more on Stanley’s acquisition of Niscayah in SDM's October issue.