A huge acquisition from Nokas – They are in the process of buying AVARN Holding

Nokas confirms, after the news was reported today in Finansavisen, that they are in final negotiations with Sector Alarm Group, regarding the acquisition of their company AVARN Holding, who operate in Sweden and Finland. The offer also includes a non-controlling shareholder stake in Nokas.

Nokas has been working for years with consolidating the Nordic market. Until now, the company has acquired 77 companies. These companies have had both weak and strong earnings, but Nokas has with its business platform and working methodology, managed to realize the value potential. 

The source in the article in Finansavisen has at best been imprecise. The proposal that will be discussed at the Nokas board meeting, June 28th, will be based on equal treatment of all shareholders and all shareholders will be able to benefit from the proposal. The board is not able to make a decision in this case, but they are able to put forth a recommendation to the general assembly. The largest shareholders have sent clear signals that say that they wish to remain large shareholders even if they sell some shares. 

In the suggested transaction Nokas will obtain all the shares in AVARN Holding who operate in Sweden and Finland. The companies in AVARN Holding have a total turnover of about 2.8 billion NOK.

With the acquisition Nokas will consolidate a fragmented Swedish and Finnish security marked. Nokas has earlier completed a similar consolidation in Norway. The company will have about 17.000 employees and have a turnover of about 8 billion NOK after the takeover. Nokas have substantial cost synergies in the Swedish market and will take over three solid companies in Finland, two of which are already in a process of merging. Nokas has earlier also invested in the Danish market.

Nokas was set to have a turnover of around 5.1 billion NOK in 2018 before the acquisition, where 1.5 billion were in the Swedish market and around 100 million were in the Finnish market. AVARN is a part of the Sector Alarm group.

The suggested acquisition will be presented at the general assembly on July 6th. An application will be sent to the Swedish competition authorities. A decision is normally made by the authorities within four to twelve weeks, the merger is therefore expected to happen right after the summer. 

Heine Wang, CEO of Nokas, states:

 – We continue our ambitions for growth through strategic acquisitions combined with organic growth within all of our business areas. The AVARN companies have a high level of recognition in the market, and will provide the Nokas Group with considerable breadth and expertise through its 7900 skillful employees. By acquiring AVARN, we consolidate a fragmented Swedish and Finnish security market characterized by a high cost level, and we become a solid Nordic security company with increased competitiveness. This will lead to more secure jobs, but will also mean increased quality and long-awaited innovative new service concepts to our customers. We see significant synergies through the optimization of resources and capabilities in both the respective markets and across national borders. As soon as the acquisition has been through ordinary competition law procedures, we will begin the work of merging and integrating the companies in our established organizations in Sweden and Finland. After that, it is natural for us to look into the opportunity of doing an IPO.

The acquisition does not affect the market in Norway, where Nokas maintains its current role as market leader, being the only complete supplier of security services. The acquisition also does not affect the Danish market. In Denmark, Nokas continues to be a challenger in the cash management and security market by offering competitive and innovative solutions for cash management and security products.
 
As part of the agreement, Sector Alarm will purchase a non-controlling stake in Nokas.
  
About the AVARN companies:
 
AVARN Security Sweden:
Has a turnover of NOK 1.3 billion SEK in Sweden and offers security services in the fields of security guard services, technical security systems and alarm central services. The company currently employs around 3,600 employees and provides services across large parts of Sweden. The acquisition of AVARN Security Sweden must be approved by the Swedish competition authorities.

AVARN Finland:
The company has recently announced a merger agreement with Prevent 360. As soon as this merger is approved by Finnish competition authorities, Nokas will have an ownership stake of about 55%. The combined Finnish business will trade for NOK 1.4 billion annually, employs around 4,000 employees and will provide security services, emergency services, technical security systems, remote surveillance services, network security and security controls at airports.

AVARN Cash Handling Finland:
The company employs around NOK 190 million and has 360 employees. AVARN Cash Handling offers cash management services to the Finnish market including value-added cash management services.
 

For further information- please contact:

Nokas AS - CEO Heine Wang, +47 915 64 888

Sector Alarm Group, CFO Eystein Lund,  +47 906 02 127