G4S has agreed to a $US5B acquisition offer from Allied Universal that will create a security company with an $18B annual turnover and a workforce of 750,000.

The offer overwhelmed Garda’s proposal of $3.13 (235 pence) per share and represents a 68 per cent premium to G4S’s last close – though it’s possible Garda may put an additional offer on the table before this latest deal is closed.

In early October, G4S announced it had received an expression of interest from privately-held Allied Universal while Canada’s GardaWorld also put forward an offer of $2.48 (190 pence) a share for the company, which was rejected.

Allied then raised its offer to $3.26 (245 pence) per share and it’s reported G4S directors plan to unanimously recommend the deal to shareholders.

Combining G4S and Allied will create a global security company with about $18 billion of annual revenue and a workforce of more than 750,000. The companies expect to close the deal in the first quarter of 2021, according to the announcement.

“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,” G4S CEO Ashley Almanza said.

“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. This unique and compelling combination will offer customers exceptional service and provides employees with an exciting future.”