Securitas agrees to acquire Diebold’s North American Electronic Security business

Securitas has agreed to acquire the commercial contracts and operational assets
of Diebold Incorporated’s (NYSE-DBD) Electronic Security business in North
America, and will operate as Securitas Electronic Security Inc. The 12-month
sales of the acquired Diebold Electronic Security operation, from June 30, 2014
through June 30, 2015, are MSEK 2 760 (MUSD 330). The purchase price is
approximately MSEK 2 900 (MUSD 350) on a debt-free basis including a normalized
working capital, which according to Securitas' calculations equates to
approximately 11x estimated EBITDA for 2015, of the acquired operation
after it has been separated from Diebold Incorporated. The acquisition will be
accretive to Securitas earnings per share as of 2016.
Diebold´s North American Electronic Security business, based in Green, Ohio,
USA, is the third largest commercial electronic security provider in North
America. For more than 70 years, Diebold´s North American Electronic Security
business has brought together technology innovations, security expertise and
quality services to become a leading provider of comprehensive electronic
security solutions and services to business customers. Today the operation
delivers a full spectrum of capabilities including design, build, integration,
installation, monitoring and service providing compelling value propositions to
customers. The monitoring services include intrusion alarms, fire alarms and
sprinklers, and monitoring of elevators. Diebold´s North American Electronic
Security business has approximately 1 100 employees. The operation includes more
than 55 000 monitored customer locations and 200 000 sites serviced.

Securitas’ worldwide strategy is to increase security solutions and technology
as a part of the offering. Over the past four years, Securitas has strengthened
its technological know-how and continued recruiting specialists. In an
increasingly demanding security market, Securitas knows that the decisive factor
will be having a critical mass of knowledge and the ability to create innovative
solutions that provide greater benefits for customers. To support the global
strategy, in addition to making substantial investments in organically building
strong competences, some key acquisitions have been made over the past four
years. In 2014, Securitas acquired the Belgian security and critical
communications systems integrator SAIT, and 24 percent of the shares in the US
remote video services company Iverify. The acquisition of Diebold’s Electronic
Security business in North America will strengthen this corporate strategy.

Securitas and Diebold believe that this deal is to the benefit of both parties.
Securitas and Diebold will do their utmost to make the transaction a success,
guarantee continuity and develop customer services and relationships. Securitas
will serve as Diebold’s preferred supplier for electronic security solutions.
This will help ensure a seamless transition for Diebold’s electronic security
customers, as well as drive further security innovation and services for the
industries in which both companies operate.

Alf Göransson, President and CEO, Securitas AB, says that this acquisition
supports Securitas’ global strategy and strengthens Securitas’ position as the
global knowledge leader in security solutions and technology.

“During the past years, we have focused on strengthening our technological
expertise and come far to become the leading security solutions company.
Securitas is at the forefront of the transformation of the security industry and
we receive proof of this every day, in our interaction with existing and
potential customers. With the acquisition of Diebold’s North American Electronic
Security business, we will be able to further accelerate our development”, says
Alf Göransson,

“Over the years, we have organically grown our electronic security business to
become a leading provider of broad, innovative solutions - leveraging our
industry-leading software and services - in the commercial and financial markets
throughout the United States and Canada.  As a highly capable global leader in
the security industry, Securitas has the scale and resources to take this
business to the next level for its customers.  We also look forward to
continuing the relationship with Securitas as our preferred provider of
electronic security to provide compelling expertise that further leverages our
combined capabilities in services and security moving forward. This will enable
a smooth transition for customers and employees alike.  Given the transformation
that is occurring in the banking industry, this strategic decision will enable
us to accelerate our own transformation and focus on the exciting opportunities
we’re seeing for growth and innovation in that market,” says Andy W. Mattes,
President and CEO, Diebold Incorporated.

Tony Byerly, who has led Diebold’s global electronic security business for the
past three and a half years, will continue to lead the electronic security
business as President and report to Santiago Galaz, Divisional President
Securitas Security Services North America. Santiago Galaz says in a comment to
the acquisition:

“We welcome Tony and his entire team to Securitas.  Securitas Electronic
Security - previously Diebold Electronic Security - will continue to be a leader
in the North American electronic security industry.  With this acquisition, we
will have the ability to increase our security solutions sales, while also being
an active player in the technology market, which will bring added value to our
customers and make our offer much stronger. We also believe that we can leverage
Diebold’s electronic security expertise to Securitas’ existing customer base and
offer our customers possibilities of protective services by optimizing the
equation between different service components." says Santiago Galaz.

The financing of the acquisition of Diebold’s North American electronic security
business is in place in the existing Revolving Credit Facility. The one-off
costs for separating the Diebold Electronic Security operation from Diebold
Incorporated together with the transaction costs will amount to approximately
MSEK 60 (MUSD 7) and will be recognized in 2016.

The acquisition is subject to regulatory approval. Closing of the acquisition is
expected during first quarter of 2016, from which point it will be consolidated
in Securitas.

This press release is also available at: www.securitas.com

Information:
Gisela Lindstrand, Senior Vice President Corporate Communications and Public
Affairs, Securitas AB, phone +46 10 470 3011, mobile +46 70 287 8662, or email
gisela.lindstrand@securitas.com
Micaela Sjökvist, Head of Investor Relations, Corporate Communications and
Public Affairs, Securitas AB, phone + 46 10 470 3013, mobile +46 76 116 7443 or
email micaela.sjokvist@securitas.com

Mike Jacobsen, Media Relations, Diebold Inc, phone +1 330 490 3796, email
michael.jacobsen@diebold.com
Steve Virostek, Investor Relations, Diebold Inc., phone +1 330 490 6319, email
Stephan.virostek@diebold.com

SPECIAL NOTE:  Please refer to the Diebold’s press release titled “Diebold
agrees to sell North American Electronic Security business to Securitas”, also
issued today, for related information.

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.

Securitas AB discloses the information provided herein pursuant to the
Securities Markets Act and/or the Financial Instruments Trading Act. The
information was submitted for publication at 18.00 (CET) on October 25, 2015.