Corporate finance is also present in the security sector. This is evidenced by the agreement reached by Telefónica to acquire a 50% stake from Prosegur in its alarm business in Spain for €300M. With this alliance, both companies seek to accelerate the development of this business and evolve the offer of security services.
The Spanish alarm market has not only experienced significant growth rates, but this trend is expected to increase over the years due, above all, to the fundamental role that security will play in the connected home. For this reason, Telefónica is broadening its horizons and is once again focusing on the security market.
The Spanish multinational has M&A transactions-y-mergers and acquisitions-m-a/»>adquirido recently a 50% stake in Prosegur Alarms, an operation valued at 300M€ which the teleco could pay, partially or in full, in treasury shares. In this case, and taking into account that Telefónica's current share price is 6.72 euros, Prosegur would hold 0.8% of the operator's capital.
The alliance is still pending approval by the relevant authorities, but the agreement means that both companies will jointly manage the alarm business with two clear objectives:
- Accelerate the development of the aforementioned alarm business in Spain.
- To evolve the residential and business security service offering by generating innovative customer solutions.
SECURITAS DIRECT
This is not the first time that Telefónica has entered the world of security with major brands in the sector. Back in 2015, the company signed a commercial agreement with Securitas Direct which included the home alarm in its Fusion packages for a price of 25 euros per month. However, the results disappointed expectations, which led to the break-up of relations three years later.
It is worth mentioning that Securitas currently holds half of the market share in Spain, while Prosegur holds around 10%.
RISE IN THE STOCK MARKET
In addition, the agreement with Telefónica has boosted Prosegur's share price on the continuous market. The company closed the session with the biggest rise on the market, up 9.9%.%. Even so, its shares have lost more than 12% of their value on the stock market so far this year.
In contrast, the news had less effect on Telefónica, which advanced only 0.78%.
OTHER TELEFONICA PURCHASES
SYNERGIC PARTNERS
With this acquisition, the Catalan Big Data consultancy specialising in the analysis of large amounts of information in the areas of customer insight, fraud prevention, risk and M&A is integrated into Telefónica's global Business Intelligence & Big Data department.
SALUSPOT
Telefónica Digital, the Spanish multinational's global digital innovation unit, also acquired a strategic stake in the company Saluspot, which specialises in a free online consultation service with advice from registered doctors.
This agreement accelerated the firm's growth and expansion in Latin America due to the capabilities and power of the Telefónica brand in the region.