Mitie announces £14 million deal to acquire Vision Security Group from Compass

Mitie Group plc has agreed to acquire Vision Security Group Limited (VSG), a wholly-owned subsidiary of Compass Group plc. VSG is a leading security services provider offering integrated security systems, security guarding and key holding services. The business operates with a team of approximately 6,000 employees servicing more than 1,400 guarding locations and over 5,000 systems locations across the UK and Ireland.

The acquisition of VSG further strengthens the position of Mitie’s Total Security Management (TSM) business as one of the leading providers of integrated and risk-based security services in the UK. In particular, the combination of the two business will offer opportunities to accelerate the growth of Mitie’s premium technology-enabled and intelligence-led security solutions.

Phil Bentley

Phil Bentley

The consideration of £14 million – on a debt free, cash free basis – will be paid in cash at completion, subject to any adjustment for final completion accounts, and will be funded through Mitie’s own cash resources.

VSG reported revenues of £192.1 million and pre-tax losses of £2.7 million in its statutory accounts for the year ended 30 September 2017. At that date, VSG had gross assets with a value of £42.4 million.

Although final accounts have not yet been closed, it’s expected that VSG will report modest profitability for the financial year ending 30 September 2018.

Jason Towse: leader of Mitie's security management business

Jason Towse: leader of Mitie’s security management business

Phil Bentley, CEO at Mitie, commented: “As a core part of Mitie, our security business has delivered a strong performance over the last three years, with sales growing by over 30%. This acquisition gives us the leadership position we seek in order to maximise value from our technology-led solutions.”

Jason Towse, managing director of Mitie TSM, added: “VSG is a well-respected brand in the security market with great clients and motivated front line colleagues and leaders who will complement our own offer. Together, we will create the largest intelligence and technology-enabled security business in the UK.”

The acquisition of VSG constitutes a Class 2 transaction for the purposes of the Financial Conduct Authority’s Listing Rules. The acquisition is expected to complete by the end of this month.

About the Author
Brian Sims BA (Hons) Hon FSyI, Editor, Risk UK (Pro-Activ Publications) Beginning his career in professional journalism at The Builder Group in March 1992, Brian was appointed Editor of Security Management Today in November 2000 having spent eight years in engineering journalism across two titles: Building Services Journal and Light & Lighting. In 2005, Brian received the BSIA Chairman’s Award for Promoting The Security Industry and, a year later, the Skills for Security Special Award for an Outstanding Contribution to the Security Business Sector. In 2008, Brian was The Security Institute’s nomination for the Association of Security Consultants’ highly prestigious Imbert Prize and, in 2013, was a nominated finalist for the Institute's George van Schalkwyk Award. An Honorary Fellow of The Security Institute, Brian serves as a Judge for the BSIA’s Security Personnel of the Year Awards and the Securitas Good Customer Award. Between 2008 and 2014, Brian pioneered the use of digital media across the security sector, including webinars and Audio Shows. Brian’s actively involved in 50-plus security groups on LinkedIn and hosts the popular Risk UK Twitter site. Brian is a frequent speaker on the conference circuit. He has organised and chaired conference programmes for both IFSEC International and ASIS International and has been published in the national media. Brian was appointed Editor of Risk UK at Pro-Activ Publications in July 2014 and as Editor of The Paper (Pro-Activ Publications' dedicated business newspaper for security professionals) in September 2015. Brian was appointed Editor of Risk Xtra at Pro-Activ Publications in May 2018.

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