Armaguard Prosegur Plan Merger
♦ Armaguard Prosegur Plan Merger – as the use of cash in Australia continues to decline, cash in transit providers, Prosegur Australia and Linfox Armaguard have agreed to merge.
The proposal for merger authorisation to be submitted to the ACCC outlines a planned merger of Linfox Armaguard and Prosegur in Australia under Armaguard branding, and includes cash in transit (CIT), technical services and ATM networks. The proposal does not include entities and services outside Australia.
According to the companies, the proposed merger represents a significant and positive development in the management of cash in transit and wholesale cash distribution in Australia, and will secure the immediate future of reliable access to cash for the Australian economy.
Cash usage has been in decline over the past decades, which has accelerated due to the impacts of the COVID-19 pandemic. This decline has led to significant excess capacity within the CIT services infrastructure, despite both Armaguard and Prosegur Australia each separately implementing numerous network optimisation projects and working with the RBA on industry reform.
While declining use of cash for payments means its movement is no longer enough to sustain 2 major players in the CIT industry, cash remains a critical component of Australian society. Armaguard anticipates a ‘less cash’ future, not a ‘cashless’ future.
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