SoftBank weighs acquisition of Allied Universal in US security services
SoftBank may buy Allied Universal, a big US security company, Bloomberg and Reuters reported on Friday. A deal could value Allied at about $18 billion, Bloomberg and Reuters said. Bloomberg said SoftBank's founder, Masayoshi Son, wants to use AI robots in many kinds of work.
SoftBank Group is considering an acquisition of Allied Universal, a US security services company, Bloomberg and Reuters reported on Friday. Bloomberg reported the news first, Reuters said.
A deal could value Allied at about $18 billion, Reuters reported, citing a person familiar with the matter. Bloomberg reported that Allied's equity value could be as much as $18 billion, citing people familiar with the matter. Bloomberg said Allied, the largest security services company in the US, also has about $12 billion of publicly traded debt.
The talks are early, and no final decision has been made, including on the price, Reuters reported, citing Bloomberg. The people asked not to be named because the talks are private, Bloomberg reported.
SoftBank founder Masayoshi Son is looking for ways to use robots powered by artificial intelligence across many industries, Bloomberg and Reuters reported. With Allied, SoftBank would want to replace some staff with robots for certain security tasks over time, Reuters reported. Humanoid security robots will likely take longer, Reuters reported.
Allied Universal provides security staff for businesses, venues and major events, Reuters reported. It also has a growing role in data centers, Reuters said. Allied is privately owned, and its backers include the private equity firm Warburg Pincus and the Canadian pension fund La Caisse, Bloomberg reported.
SoftBank declined to comment, Reuters reported. Allied Universal did not immediately respond to a Reuters request for comment.
SoftBank is known for large technology investments through its Vision Fund, Reuters reported. It owns a majority stake in the chip designer Arm, Reuters said. Last year, it agreed to buy the robotics business of the Swiss engineering group ABB for $5.4 billion, Reuters reported.
What we know: SoftBank is considering buying Allied Universal in a deal that could value the company at about $18 billion.
What we don't: Whether SoftBank will make an offer, what price it might pay, and whether Allied's owners want to sell.
Where outlets agree Bloomberg and Reuters report that SoftBank is considering an acquisition of Allied Universal that could value it at about $18 billion.
Where they differ Bloomberg puts Allied's possible equity value at as much as $18 billion, while Reuters says a deal could value the company at about $18 billion.