G4S Plc (GFS.L,GFSZY.PK), UK's private security firm, Friday announced it has agreed to acquire South African retail cash solutions technology provider Deposita Systems Pty Ltd., together with certain related intellectual property rights for a total consideration of 114 million South African rand or 8.2 million pounds, post debt restructuring.
Upon completion of the deal, G4S will own 87 percent of Deposita shares.
Deposita provides cash devices and related cash-in-transit, cash processing and insurance for retail sector. G4S said the acquisition will significantly strengthen its position in the South African retail cash technology marketplace.
The acquisition will also provide G4S with synergies through insourcing cash-in-transit, cash processing and insurance services which are currently outsourced to third parties, the company said.
Founded in 2004, Deposita employs 165 staff across the country. Following the completion of the deal, its CEO Wessel Oosthuizen and the remainder of the management team will remain with the business, and will report to Albert Erasmus, the Managing Director of G4S Cash Solutions Pty. Ltd.
Andy Baker, Regional President, G4S Africa, said, "....We believe their market leadership in cash device technology, extensive client base and unmatched track record of delivery in this highly specialist area will underpin our service offering here in South Africa and elsewhere in Africa."
According to G4S, the acquisition will be undertaken by G4S Cash Solutions Proprietary Ltd., in South Africa, from AFGRI Operations Pty Ltd, a wholly owned subsidiary of AFRGI Ltd., and Fox Business Trust.
G4S, which was heavily criticized for its weak handling of London 2012 Olympics security contract, in early November said its overall revenues for the first nine months of 2012, excluding the London 2012 contract, grew 6.3 percent at constant exchange rates and 4.1 percent at actual exchange rates.
Including the contract, revenues increased 9.2 percent at constant rates and by 6.9 percent at actual exchange rates.
GFS.L is currently trading at 252.30 pence, down 0.12 percent on the LSE.
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by RTT Staff Writer
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