G4S plc said its board recommends shareholders accept a $5.1 billion offer by Santa Ana-based Allied Universal Security Services LLC for a deal that would create the world’s sixth-biggest employer.
Privately held Allied Universal, the largest security firm in North America, offered 245 pence in cash for each share, G4S said today in a statement on its website. Shares of G4S (LON: GFS) today gained 3.2% to 255.30 pence on the London Stock Exchange.
“The G4S Directors intend unanimously to recommend that G4S shareholders accept the offer,” the London-based company said.
G4S shareholders still need to approve the deal. The companies expect to close the deal in the first quarter of 2021.
The offer represents a 68% premium to Sept. 11 when bidding began by a rival security company, Garda World Security Corp., a Quebec-based private security firm with 102,000 employees. Garda World, which has offered 235 pence, can still counter with a higher bid.
A deal between Allied and G4S would result in a company with 773,000 employees, which would be just behind Amazon.com.