G4S Plc. has agreed to a $5.1 billion takeover bid from Allied Universal Security Services LLC, a deal that combines two of the world’s largest security firms, according to Bloomberg. Allied raised its offer price to 245 pence per share to see off interests of Canadian rival Garda World Security Corporation that submitted a proposal of 235 pence per share.
- The deal would create a company with about $18 billion annual revenues and a global workforce of more than 750,000.
- Allied offer represents a 68% premium to G4s’s last close before first announcing a takeover approach in September.
- Allied has been seeking to woo G4S’s board and only wanted to proceed with the offer if it could win their recommendations.
- Allied has committed financing and signed a preliminary agreement for future funding of G4S’s pension scheme.
- Garda, backed by buyout firm BC Partners, has repeatedly criticized G4S management as it pushed its hostile bid.
- Garda last raised its offer a week ago and still has the option of another bid.
G4S stock is currently gaining. GFS: LON is up 0.51%.