Swedish Securitas enters the Australian security services market

Securitas has signed an agreement to acquire the Australian security services company PSGA. The enterprise value is estimated at MSEK36 (MAUD5.5).
PSGA has been a partner to Securitas in Australia for many years, providing consulting and investigation services and guarding services to Securitas’ global customers mainly in Sydney and Melbourne. The company has 120 employees and annual sales of approximately MSEK81 (MAUD12).
“We see opportunities to grow with our global customers in Australia, to establish a solid local business in the country, and at the same time develop the market over time into more electronic security-based solutions,” says Alf Göransson, Securitas’ President and CEO.
The Australian private security market, which includes on-site and mobile guarding, monitoring, cash In transit (CIT) and private investigations, is a mature market, estimated to be worth BAUD6.2, with an expected annual growth rate of 2 percent over the next five years. It is estimated that the industry has more than 54,000 security officers and 6,000 active security companies. However, there has been a trend of consolidation in the market over the past decades. Geographically, the security services market in Australia is concentrated to Sydney, Melbourne and Brisbane.
The acquisition is expected to be consolidated in Securitas in the third quarter of 2017.