Prosegur floats its Cash subsidiary on the stock exchange to grow in its three divisions: Alarms, Security and Prosegur Cash.

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Integral service around a transaction
BY : Diego GutiérrezJanuary Thu, 2017
Prosegur is immersed in a restructuring process with the aim of transforming its current management model divided into geographical areas to a new model by business type. The plan is to divide the operations of Prosegur Cash, Prosegur Security and Prosegur Alarms and to be able to potentialise each area.

Prosegur floats its Cash subsidiary on the stock exchange to grow in its three divisions: Alarms, Security and Prosegur Cash.

About Cash

Business area of Prosegur  Cash is responsible for cash logistics and cash management, including the management of armoured cash vans. Cash has more than 7,000 armoured vehicles and a workforce of 51,000 people in 15 countries. Since 2007 it has managed to increase its global market share by 70% and aims to grow its revenues at an annual rate of 7.7% until 2019. Cash currently contributes 90.9% of its EBIT (231M) to Prosegur.

Cash intends to realise acquisitions in this sector where they believe there is room for consolidation and reveal that there are 500 companies dedicated to this business worldwide.

Market launch operation

Prosegur's intention is to place up to 49% of this division in the first half of 2017 for €2000M, which will allow it to maintain control and at the same time capture resources to grow not only in cash, but also in the other two strategic areas, which are security solutions and alarms. The company also intends to reduce debt. The transaction will be carried out through a public offering.

In the last month Prosegur announced that Prosegur Cash will receive a three-year syndicated loan of €600M to finance its growth. In addition, Prosegur Cash will assume part of the debt of the PSG group, which at the end of 3Q2016 amounted to €706M.

Consolidation of the cash market

The cash in transit and cash management sector is a mature and established market in which 500 companies already operate and where internet payments and new technologies are expected to have a negative effect on this market.

Prosegur's challenge is to continue to grow in this mature market and to do so it needs to make acquisitions. Prosegur aims to make small acquisitions in emerging countries in order to grow in geographical markets. This year it has already bought SVB Services to enter the South African market.

"Prosegur Cash is the second company in the sector in the world with a market share of 12% in terms of turnover. It has positioned itself as a true international benchmark and has a clear vocation to lead the international consolidation of the sector", Lasanta underlined.

Prosegur to focus on technology markets with growth potential

In addition, the IPO will also provide liquidity to support its other two divisions: Security and Alarms.

 In 2016, as we announced in a post a few months ago, Prosegur has been growing in the cybersecurity market and has acquired several companies such as Dognaedis, a Portuguese company that offers managed information security and data protection services, with clients mainly in the financial and telecommunications sectors and also offers cybersecurity services for governments and defence departments.

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