Securitas Acquires FE Moran Security Solutions for $82M
STOCKHOLM Dec 19 2020 — Securitas AB has acquired FE Moran Security Solutions, a super-regional alarm monitoring and electronic security systems integration company based in Champaign, Ill., for approximately $82 million (MSEK 695).
The acquisition increases Securitas’ density and offerings in the United States’ Midwest region and is aligned with the company’s ambition to double the size of its security solutions and electronic security business, according to an announcement.
Founded in 2003 by Brett Bean, who serves as president and CEO, FE Moran Security Solutions provides an integrated electronic security offering — from design to installation and from maintenance to alarm monitoring. The company focuses on commercial clients in several Midwestern states across the U.S., as well as numerous marquee national account clients.
FE Moran’s portfolio includes electronic security services such as intrusion, video surveillance, fire/life-safety and access control systems. The company also operates a UL-Listed, TMA Five Diamond-certified alarm monitoring center.
FE Moran has an outstanding reputation and is known for providing best-in-class service to its clients, with total annual sales of approximately $54 million, mainly driven from a sizeable recurring monthly revenue (RMR) base and installation sales, the announcement states.
“This acquisition supports Securitas’ global strategy, strengthens our position as a leader in protective services and our ambition to double the size of our security solutions and electronic security business by 2023,” says Magnus Ahlqvist, president and CEO, Securitas. “This acquisition complements our North American electronic security business model and will further strengthen our position as the leader in protective services.”
FE Moran will become part of Securitas Electronic Security (SES), further strengthening the system integrator’s leadership in the commercial electronic security industry across North America. The combined companies further provide a unique specialization in serving large multisite, enterprise-wide national and regional clients.
“We are very excited to welcome FE Moran Security Solutions’ clients and electronic security team members to Securitas. Acquiring FE Moran Security Solutions provides [SES] with increased capabilities and expertise in the Midwest,” comments SES President Tony Byerly. “Their talented team members, excellent client base and strong presence provide our North American electronic security business the opportunity to grow and expand within the region.”
Bean expresses his team has worked hard over the past 17 years in building one of the nation’s leading electronic security providers, “so finding the right home for our clients and our associates was extremely important.”
He continues, “I am confident Securitas is the right home and is best positioned to not only care for what we’ve accomplished, but to take it to the next level.”
The acquisition-related costs are expected to be approximately $7.2 million, mostly to be recognized in 2021, the announcement states. The acquisition is expected to be per share accretive as of 2022 and will be consolidated in Securitas as of Dec. 16.
