This is some big news. Both GardaWorld and Aegis are big companies, and this is more sign of consolidation in the industry as the market compresses. The Iraq and Afghanistan wars have drawn down significantly since the hey day of contracting, and moves like this signal the latest strategies of the major companies–if they want to survive.
I first found out about Aegis shopping around for buyers from Intelligence Online. It has a paywall, but what little they said in the brief description is all I needed to know. As for GardaWorld, here is a snap shot from Wikipedia as to their size and status. Pretty big..
GardaWorld Security Corporation is a Canadian private security firm, based in Montreal, Quebec, Canada, with 45,000 employees (by November 2013). Though GardaWorld International Protective Services, now the international division of the company, began its operations in 1984, Garda World Security Corporation was established by its Quebecer owner Stéphan Crétier in 1995, who initially invested $25,000 in the company, then named Trans-Quebec Security Inc. The company is the fifth largest consulting and security services firm in the world, with operations in North America, Latin America, Europe, Africa, Asia and the Middle East. The company today runs heavily on physical security guard services as well as armoured car services in select countries and cities throughout the world. The firm has over 200 offices worldwide.
Aegis is today a diverse and comprehensive organisation operating in countries spread across several continents in a variety of service streams.
Founded in 2002, Aegis was established as a US government security provider from 2004, when it was awarded the ground-breaking Reconstruction Security Support Services Iraq (RSSS-I) contract with the US Department of Defense. The $1.3 billion lifetime value of this contract made it one of the largest security contracts ever awarded.
The experience and ethos built during the RSSS-I contract, and a range of other government and commercial contracts in Iraq, allowed Aegis to transition to the Security Support Services Iraq (SSS-I) contract, and to secure and successfully mobilise the security for the US Embassy Kabul, a project which currently employs over 1000 people.
The definition and requirements of security are ever changing. In recent years, we have grown a successful security service business in support of the extractives industry, focused initially on the Oil and Gas sectors in Iraq, but expanding into East and North Africa. We have also been in the vanguard of developing comprehensive business practices and ethical codes of conduct for the security industry and as such we are one of the first companies to become accredited to the industry standard (PSC 1).
Aegis now provides a wide breadth of complementary service streams including Kidnap for Ransom Response, technology integration, advisory and intelligence, training, consultancy, strategic communications and protective services. Across these areas we employ over 3500 people at any one time and run a fleet of over 300 vehicles.
That is 48,500 plus or minus employees and contractors!… Quite the army. lol
As to the details of this acquisition, I will post what the companies have sent out for PR. The news release mentioned a couple of interesting things. First is the fact that both companies are the first to be PSC-1 certified. The second interesting tidbit is that the new company wants to hit the African and Middle Eastern markets hard with their services. Aegis will definitely bring a lot to the table when it comes to those regions.
I have written in the past about GardaWorld and their goals in the middle east, and I view this as further proof of those plans drawn up by CEO Stephan Crétier. Although they have had some hiccups and the whole Daniel Menard episode in Afghanistan was one example. I also found an article that talked about how the draw down of the wars in Iraq and Afghanistan, and the fierce competition between those that were still on the scene, has resulted in companies like GardaWorld to ‘be competitive’. In other words, lowering salaries and hiring cheaper labor–something we have seen in the maritime security market as well.
One final note. I have no idea if everyone that is working for Aegis now, will have to change t-shirts and wear the GardaWorld crest?… Or if all the benefits and pay scales will change, now that Aegis has a new owner. We will see how that goes and that process can be kind of crappy for the employees and contractors of said company.
Sometimes with these things, the parent company likes to keep the newly acquired company intact with the same name and everything. Just different owners with a little crossover of upper and mid- management. But who knows, and we will see how the acquisition goes? I will leave it to those employees, contractors, upper management, etc. in the comments below to explain how things are going. –Matt
As part of its expansion, the company signs a binding agreement for the acquisition of Aegis Group
MONTREAL, QUEBEC–(July 13, 2015) – GardaWorld, the world’s largest privately owned security and cash services provider, announces today the strategic expansion of its protective services platform in Africa and the Middle East.
Over the past decade GardaWorld has continuously expanded its operational capacity as demand for specialized and professional services to protect high profile diplomatic staff, development projects and leading oil & gas companies dramatically increased in Africa and the Middle East. In the current geopolitical context, such comprehensive security services offering remains critical for companies and governments operating in the region and GardaWorld has committed to become a premier security provider globally. The company expects to complete this phase of its strategic expansion plan before the end of the year.
As the first phase of its strategic expansion, GardaWorld is pleased to announce that it has entered into a binding agreement for the acquisition of Aegis Group, a leading provider of highly specialized protective services with annual run-rate revenues of over CAN$450 million with a presence across 10 African and Middle East emerging markets.
“Aegis Group’s operational platform will complement GardaWorld’s offering and geographic footprint as we continue to build our protective services capabilities throughout Africa and the Middle East,” said Stephan Crétier, Founding President and CEO, GardaWorld. “Aegis Group and GardaWorld have both been truly committed to setting the highest professional and ethical standards in the industry. We are the first two private security providers in the world to obtain the PSC.1 certification, offering our clients a complete peace of mind service solution in emerging markets. Once we have completed the integration, we will become a clear market leader, providing premier professional security services with the unsurpassed depth of our offering and strength of our global platform.”
“In the next phase of our growth strategy, planned for later this year, we expect to further expand GardaWorld’s regional infrastructure and to double our physical footprint by reinforcing our presence on the ground in nearly 20 countries in Africa and the Middle East. Our goal is to offer a specialized and distinctive protective services offering, to more clients, including governments, diplomatic organizations, large critical infrastructures, mining, oil & gas companies, NGOs and Fortune 500 corporates, in more places and where they need us most than any other company in our market,” continued Mr. Crétier.
GardaWorld’s acquisition of Aegis Group is subject to customary closing conditions, including regulatory approvals and is expected to close within the next 90 days.