Loomis enters agreement to acquire 100% of Burroughs for initial price of $72M
Loomis entered into an agreement to acquire 100 percent of Burroughs, Inc for an initial purchase price of $72M on a cash and debt free basis, plus a potential earn-out. The acquisition is in line with Loomis' communicated strategy to broaden its ATM and Automated Solutions service offering by acquiring new capabilities. Burroughs delivers comprehensive lifecycle management services across a wide range of device types in the US and Canada. The company offers digital and on-site first- and second-line maintenance services for, among others, ATMs, smart safes, and kiosks. These services include payment and transaction automation, unattended self-service technology, remote monitoring, predictive maintenance, and other connected technologies. The company is OEM-agnostic, ensuring that its solutions and services are adaptable to various device types. With a total workforce of approximately 600 employees, of which the majority are skilled service technicians, Burroughs has established itself as a leading player in the industry across the US and Canada. In 2024, the company reported revenues of $107M. The initial purchase price amounts to $72M on a cash and debt free basis, with a potential earn-out of a maximum of $38M. The initial purchase price corresponds to a 6.5x EV/EBITDA multiple on adjusted basis for year-end 2024 financials. The acquisition will be funded through available cash and existing credit lines and will have no material impact on the Group's leverage. The business will be reported within Segment USA and consolidated into Loomis as of closing of the transaction. Closing is expected during the second quarter, subject to certain closing conditions. The management team of Burroughs will remain with the company in their current positions. The acquisition is expected to be accretive to the Group's operating profit and the earnings per share of Loomis over time.
