logo
Share SHARE
FONT-SIZE Plus   Neg

G4S Agrees To Buy South Africa's Deposita For GBP 8.2 Mln

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.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Facebook Inc. (FB), Wednesday reported a jump in profit for the second quarter, as the social networking giant's bottom line continues to be driven by soaring ad revenues. Both earnings and revenues trumped Wall Street expectations, sending shares up by 6 percent in the extended hours. Menlo Park,... Boeing Co.(BA) reported a loss for the second-quarter 2016 compared to profit in the prior year, reflecting 787 cost reclassification and charges on the 747 program and the KC-46 Tanker program, partially offset by solid execution and higher volume. It cut its profit outlook for fiscal year 2016, while it reaffirmed annual revenue guidance. Automaker Fiat Chrysler Automobiles NV on Wednesday reported a 25 percent increase in profit for the second quarter from last year. However, quarterly net revenues and worldwide shipments declined from last year.
comments powered by Disqus
Follow RTT