SoftBank in early talks to acquire Allied Universal for up to $18 billion - WSJ

Japan's SoftBank Group is reportedly in early talks to acquire U.S. security services provider Allied Universal, with a potential valuation of up to $18 billion, according to the Wall Street Journal. The negotiations are still in the initial stages and there is no assurance the deal will go through. SoftBank's CEO Masayoshi Son is intensifying the conglomerate's expansion into artificial intelligence and robotics.

The potential acquisition would be a major investment for SoftBank, aligning with its recent focus on AI infrastructure, including a significant $64 billion commitment to OpenAI and developments in data centers and semiconductor technology. Allied Universal operates globally, providing armed and unarmed security services alongside technology-based solutions, generating about $23 billion in annual revenue.

While traditionally centered on physical security, the company has recently expanded its technology offerings to incorporate AI-powered monitoring, real-time data collection, incident reporting, and GPS tracking. These advancements could align well with SoftBank's strategic goals. SoftBank already holds stakes in Allied Universal's predecessor since 2015 and backed the business with a stake valued at over $7 billion in 2019.

The company's international presence expanded in 2021 when it acquired British security firm G4S for around £3.8 billion. If the transaction proceeds at the reported valuation, it would significantly increase Allied Universal's value since its 2019 assessment, though final terms remain uncertain.