News

G4S rejects bid for its cash solutions, ATM management business

October 29, 2013

International security solutions group G4S PLC, a provider of ATM and cash management services, has "firmly rejected" an offer from Charterhouse Capital Partners LLP for its cash solutions business. In a news release, G4S said it received the non-binding, indicative and conditional offer of £1.55 billion ($2.13 billion) on Oct. 22. 

"The G4S board regards the nature and timing of the approach to be highly opportunistic and, following due consideration ... the offer has been firmly rejected considering the strategic importance of the cash solutions businesses to G4S and because the board believes the conditional offer fundamentally undervalues the business and its prospects," the board said in a statement. 

The release cited four chief factors in the board's decision:

1. strong market growth — between 2007 and 2011, cash in circulation grew at around 7 percent CAGR in G4S developed markets and 12 percent CAGR in its emerging markets; 
2. market-leading positions — in 61 of the 66 markets in which it operates, G4S cash solutions is the No. 1 or No. 2 provider;
3. business synergies — together, the company's cash solutions and secure solutions businesses present significant cost synergies and cross-selling opportunities; and
4. an attractive financial profile — G4S has delivered competitive margins and growth rates.

Read more about vault cash and cash management.