Prosegur Takes Over Services from Cash Subsidiary

Prosegur Compañia de Seguridad (Prosegur) and its listed subsidiary Prosegur Cash have reached an agreement for the acquisition, by the former, of most of the process outsourcing and value-added services business developed by Prosegur AVOS, which was founded and is owned by the latter.

The transaction will amount to €67 million minus net financial debt. The transaction is limited to the Spanish market, although both companies have agreed to jointly analyse the possibility of Prosegur acquiring the other activities of this business that Prosegur Cash carries out in other countries.

Prosegur AVOS commenced operations in 2015 as a business division of Prosegur Cash in response to the outsourcing opportunities offered by the financial sector (AVOS stands for Added Value Outsourcing). Since then, it has built up a workforce of more than 2,200 people and a portfolio of back-office services relating to the sale of financial services, anti-money laundering technology, document management and insurance and legal products.

Once the transaction is completed, Prosegur AVOS will operate as an independent business unit within the group, along with Prosegur Security, Prosegur Alarms, Cipher (the cybersecurity business) and Prosegur Cash. In this new phase, says the parent company, Prosegur AVOS will benefit from greater geographical and sectoral coverage by seeking synergies with the capabilities offered by Prosegur, as well as cross-selling opportunities to a larger customer base. Prosegur will also provide the resources and investment capacity to drive growth in process outsourcing and value-added service activities.

Prosegur Cash, meanwhile, says it will continue to promote its New Products area as a key element of its transformation strategy, prioritising and accelerating the investment opportunities that have more synergies with the traditional business. In the latest financial year, New Products reported sales of €283 million, more than 15% of Prosegur Cash revenues.

Prosegur owns 75% of the shares in Prosegur Cash, which was listed separately on the Spanish Stock Exchange in 2017. It had sales of €1.5 billion in 2020, operating profit (EBIT) of €134 million and employs more than 45,00 people in 20 countries.