GFS.L Share News (GFS)

(Sharecast News) - Security services firm G4S has agreed to be bought by smaller US rival Allied Universal for 245p per share in cash, in a deal that values the company at around £3.8bn.
The price represents a premium of approximately 68% to the closing share price of G4S on 11 September, which was the start of the offer period. G4S said its directors deemed the offer to be "fair and reasonable" and intend unanimously to recommend that shareholders accept it.

The combination of the two companies will create "a world-leading" integrated security business with revenues of around $18bn, a strong international platform and an extensive portfolio of blue-chip clients across the public and private sectors, G4S said.

Chief executive officer Ashley Almanza said: "G4S has been transformed into a focused global leader in security services with market-leading solutions and a blue-chip customer base that is served by a dedicated and talented team of over 530,000 employees.

"The combination of G4S and Allied Universal creates the global leader in security with over 750,000 employees, industry leading capabilities and unrivalled market coverage."

Last week, Canadian rival GardaWorld upped its offer for G4S from 190p a share in cash to 235p. However, G4S said on Tuesday that the offer was rejected on the basis that it continued to undervalue the company.