SoftBank in Early Talks to Buy Allied Universal at Up to $18 Billion

what happened

SoftBank Group is in early-stage talks to buy Allied Universal from its private-equity owners, according to people familiar with the matter, as reported by ru.tradingview.com. No agreement is certain, but if completed, the company could be valued at as much as $18 billion, excluding its debt.

Allied is backed by U.S. buyout firm Warburg Pincus and Canada's pension fund La Caisse. SoftBank, led by Masayoshi Son, has shifted from a mix of startups to a heavy focus on AI, including a $64 billion investment in OpenAI, plans for data centers, its chip unit Arm and robotics. Last year it agreed a $5.4 billion deal for the industrial robotics business of Swiss group ABB.

Allied is one of the world's largest private-security firms, operating in more than 100 countries and territories and generating about $23 billion in annual revenue. It is also building AI-powered tools for real-time data collection and incident and GPS tracking.

why it matters

For markets, the talks show SoftBank extending its AI bet into workplace services and security. If completed, it would be a large deal in the security sector. Allied's backers valued the business at more than $7 billion in 2019, so a sale at $18 billion would imply a substantial gain for them. For now, only early discussions are reported.

market impact

SoftBank Group and security sector: possible large deal with AI focus, pressure on the group's debt load

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