#Sweden #Stockholm #Loomis AB #ATM services #Burroughs Inc

Loomis Expands Its US Business with Burroughs Acquisition

In a significant move to enhance its service offerings, Loomis AB, through its wholly owned subsidiary Loomis US Holding Inc, has reached an agreement to acquire 100% equity of Burroughs, Inc. for a starting price of USD 72 million. This strategic acquisition is designed to heighten Loomis' capabilities in providing ATM and Automated Solutions within the US market.

Overview of the Acquisition

Burroughs is well-established across the US and Canada, specializing in comprehensive lifecycle management services for various devices, including ATMs and kiosks. Their portfolio includes a wide range of services such as on-site first- and second-line maintenance, payment and transaction automation, unattended self-service technology, and advanced monitoring systems. One of Burroughs' notable strengths is its OEM-agnostic approach, allowing flexibility in servicing various technologies and devices irrespective of the manufacturer.

The company boasts a dedicated workforce of about 600 employees, primarily comprising skilled service technicians who are vital to its operational success. With reported revenues of USD 107 million in 2024, Burroughs is poised to contribute significantly to Loomis' growth trajectory.

Strategic Intent

Aritz Larrea, the President and CEO of Loomis, commented on the acquisition, emphasizing its strategic importance. He noted, "This acquisition is a pivotal step in expanding our service offerings surrounding ATMs and Automated Solutions in the US. By integrating Burroughs’ expertise, we can provide a comprehensive full-service solution to our clients, enhancing customer satisfaction while broadening our market reach."

This acquisition is part of Loomis' ongoing strategy to capitalize on adjacent services that have previously fueled its growth. The company is committed to leveraging the established customer base of Burroughs to create synergies and improve service delivery, ultimately increasing market share.

Financial Details

The initial purchase price is set at USD 72 million, calculated on a cash-free and debt-free basis. Additionally, there's an earn-out component that could reach up to USD 38 million depending on the performance metrics following the acquisition. This price reflects a 6.5x EV/EBITDA multiple based on adjusted financials for 2024.

Funding for the acquisition will come from Loomis' available cash resources and existing credit lines, ensuring that it does not have a significant impact on the company's leverage. The completion of the transaction is anticipated during the second quarter of this year, pending certain conditions. Once finalized, Burroughs will operate within Segment USA and will be fully integrated into Loomis operations.

Future Outlook

As part of the integration strategy, the current management team of Burroughs will continue in their roles, ensuring a smooth transition and continuity in service delivery. Loomis anticipates that this acquisition will positively influence both its operating profit and earnings per share in the long run.

In conjunction with this announcement, Loomis will release its first-quarter financial results for 2025 on May 7th, which will provide further insights into the company’s performance metrics and the anticipated impact of the Burroughs acquisition.

For more updates regarding the acquisition and Loomis' ongoing projects, visit their official website or subscribe to their investor communications.