Traditionally labor-intensive, their operations would certainly have much to gain from automating their processes. This is clearly one of the bold bets, and possibly one of the more far-fetched ones, given that the man is known for walking a very fine line, being made by SoftBank Chairman Masayoshi Son.

The latter is reportedly interested in Allied Universal, the major US security services company, currently owned by Warburg Pincus and La Caisse, formerly known as the Caisse de Depot et Placement du Quebec.

According to the rumor, a valuation of $30bn, including debt, is under consideration. According to MarketScreener analysts, who are working with estimates here since the group's accounts are private, that would represent a multiple of between 13x and 16x Allied's EBITDA.

Allied Universal would also benefit from bringing in a new shareholder capable of injecting equity into its balance sheet, which is heavily burdened by debt, since according to Moody's, its financial leverage still exceeded 7x EBITDA in the latest verifiable data.

These discussions could in any case spark investor interest in the sector's other listed groups. Sweden's Securitas is valued at around nine times EBITDA, the UK's Verisure at around eight times, and US-based ADT at around five times.

Frequently discussed in these columns, Securitas has delivered a relatively disappointing operating performance over the past decade, with insufficient growth in earnings per share and questionable value creation in light of its acquisition strategy.

Restructured during the pandemic, and despite the improvement in its situation, ADT still carries significant debt, has limited capacity to generate profits for distribution to shareholders, and faces modest organic growth prospects.

In an aggressive expansion phase in Europe, and following an IPO that enabled it to shore up its finances last year, Verisure, which is also controlled by Hellman & Friedman and Eiffel Investments, does not present a markedly different profile.

https://www.marketscreener.com/news/ai-to-the-rescue-of-major-security-companies-ce785cdad188f02c