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Securitas AB: From Swedish Night Watchmen to Global Security Powerhouse
I. Introduction & Episode Roadmap
Picture this: It's December 1931, and a young security officer named Erik Philip-Sörensen trudges through ankle-deep snow in Odense, Denmark. His shoes are soaked, his breath visible in the frigid air. Through frost-rimmed windows, he catches glimpses of families gathered around warm fireplaces—the very homes he's sworn to protect. In that moment, something crystallizes for Erik: the profound responsibility of being society's vigilant protector.
That fleeting realization would plant the seed for one of the most remarkable corporate transformations in European business history—a journey from a handful of night watchmen patrolling southern Sweden to a global security empire spanning 44 countries with over 336,000 employees.
Securitas AB is a Swedish group devoted to security services, including security guarding, mobile patrolling, monitoring, investigation and related consulting services. The group is headquartered in Stockholm and had over 336,000 employees in 44 markets worldwide as of 2024.
This is the story of Securitas AB—a company that launched the world's first online-connected ATM, spun off multiple billion-dollar businesses (including lock giant ASSA ABLOY), conquered America by acquiring Pinkerton and Burns, and then had the audacity to repurchase electronic security capabilities decades later for $3.2 billion. It's a masterclass in acquisition-driven growth, strategic spin-offs, and the relentless transformation of an industry from human-centric guarding to AI-enabled intelligent security.
The central question: How did a small night watch company in southern Sweden build a global security empire spanning six continents—and what does its current technological pivot mean for the future of the industry?
"In the third quarter, we delivered a record-high operating margin and achieved 19 percent growth of earnings per share. Today's Securitas is a more resilient and future-proof company, well-positioned to continue to generate long-term value."
As of Q3 2025, Securitas reported a solid operating margin of 8.1%, with an adjusted margin of 8.3% after excluding the government business being closed. The company achieved strong EPS growth of 19% in the quarter. After 19 consecutive quarters of margin improvement, Securitas has delivered on its transformation promise—but the story of how it got here is one of the great European business sagas of the past century.
II. Founding Origins & Erik Philip-Sörensen's Vision (1934–1950s)
The story of Securitas begins not in Sweden, but in Denmark. Securitas traces its roots back to the turn of the 20th century, when Kjobenhavn Frederiksberg Nattevagt was founded by Philip Sorensen and Marius Hogrefe. The new company offered guard services in Sorensen's and Hogrefe's native Denmark. Sorensen soon became the primary force behind the company's growth.
On a cold December evening in 1931, a young security officer named Erik patrolled the snowy streets of Odense in southern Denmark. With shoes soaked from the evening's heavy snow, he caught a glimpse of a family gathered around the fireplace in the warmth of their home. Surrounded by the quiet snowfall, Erik realized the profound duty he held as society's vigilant protector. This small but significant moment marked the beginning of Erik Philip-Sörensen's lifelong commitment and set the stage for a journey that would propel an entire industry forward.
Born in 1909, Erik Philip-Sörensen is undeniably a pivotal figure in Securitas history, as it was his vision that brought the company into existence. After several years of working in the Danish security industry, Erik got word that a guarding company was for sale in Helsingborg, Sweden. The owners were old, and the company was on the market for a bargain. Erik, accompanied by his father, took the ferry over the strait to Sweden to meet with the seller. In the 1930s, Danish businesses were not particularly welcome in Sweden—skepticism toward foreign managers was prevalent until the 1960s. Luckily, the seller was open-minded and saw no obstacles for a Dane to establish himself in Sweden. Erik traveled to Helsingborg to formally take ownership of Hälsingborgs Nattvakt. The official registration took place on May 11, 1934.
At the inaugural meeting of Hälsingborg's Night Watch, it was decided that Erik would take the role of CEO, earning a monthly salary of 250 kronor. Not exactly a fortune—but Erik had bigger ambitions.
Three years later, at the age of 28, Philip-Sörensen held a majority of shares in the company. Over the following years, he acquired control of several other companies in the Swedish security industry. Erik wasn't building a company; he was building an industry.
Business was prospering—among others, Lars Magnus Ericsson (founder of the telecom company Ericsson) invested in the company's various technology projects. At an early stage, Philip-Sörensen started taking an interest in ethical and moral issues facing guards and watchmen. As the business expanded and employees with different backgrounds were hired, he established a motto: 'honesty, vigilance and helpfulness'—to be at the core of all company operations.
These three values—later formalized as Integrity, Vigilance, and Helpfulness—became the foundation of Securitas' corporate culture and are embodied today in the company's iconic three red dots logo. The dots are described as representing the group's core values of "Integrity, Vigilance, and Helpfulness."
Innovative ways of increasing officers' self-esteem and solidarity were something Securitas' founder prioritized. The Officers' Day was an appreciated initiative that helped create team spirit. It would be followed by the much larger Officers' Assemblies, the first of which was held in Brunnsvik, Sweden, in 1958.
In 1949, AB Securitas Alarm was founded as the company's security technology subsidiary, and during the following decade, the company started expanding internationally. Securitas made its first technical breakthrough in 1961 with the Securi-Coll automatic access control system.
What's remarkable about Erik Philip-Sörensen's approach was his willingness to embrace technology from the very beginning. While competitors focused solely on boots-on-the-ground guarding, Erik saw that the future lay in the intersection of human presence and technological innovation. This foresight would pay extraordinary dividends in the decades to come.
By the time Erik Philip-Sörensen handed over the control of Securitas to his sons, Sven and Jörgen, in 1981, the company employed almost 24,000 people, had offices in 15 countries and an annual turnover of 1.9 billion SEK, making it one of the world's largest security firms.
III. Technology Pioneer: The ATM & Early Innovation (1960s–1970s)
If you've ever used an ATM, you have Securitas to thank. Yes, a Swedish security company—not a bank, not IBM, not an American fintech pioneer—created the system that would revolutionize how the world accesses cash.
In the meantime, Securitas had developed additional uses for Securi-Coll. In 1965, a mechanism for automated services such as time registration and self-service purchases was developed. Shortly after obtaining its patent, Securitas introduced the world's first automated payment systems for gas stations in Sweden, enabling transactions with cards and codes without the need for service personnel.
The technology originated from building access control—a natural extension of Securitas' core security business. The basic technology was derived from building access control that employed a card, PIN and registration. This system was introduced at a fair in Stockholm in 1964 by Securitas. At the Stockholm fair in the autumn of 1964, Securitas presented a passage-control system based on a personal card plus four-number PIN plus registration. It used a plastic-coated card with punched holes, optically decoded.
When Swedish banks faced capacity constraints in the late 1960s, they approached Securitas with an intriguing question: Could this gas station payment technology be modified for cash withdrawals?
Could this technology be the solution to the bank's capacity problems? An automated solution for cash withdrawals would help get the pressed banks back on their feet. The Swedish Savings Bank encouraged Securitas Alarm to modify its payment system for gas stations to be used also for cash withdrawals. In 1967, an agreement between Securitas, the Swedish Savings Bank's data centers, and IBM was established with the aim of creating an online-connected automated teller machine.
On May 7, 1968, Securitas launched the world's first ATM linked to a banking system at Oxie Sparbank in Malmö. Less than a year later, Securitas and the Swedish Savings Bank made history by launching the world's first online-connected ATM at Oxie Sparbank in Malmö. This innovative machine was directly linked to the bank's computing systems, a significant advancement in banking technology.
The next technical step occurred on May 7, 1968, when the world's first online ATM was introduced at a savings bank in the city of Malmö. This machine was connected to an IBM 360 via an interface.
The impact was immediate and global. By the beginning of 1968, there was a sales rush. Many European countries installed one or several machines. In Switzerland, for example, all the banks got together (for the first time ever!) to see a demonstration of the new technology, which resulted in an order for 30 Bankomats. The banks collaborated to take the machines live on the same day in August 1968. The Bankomat continued to raise enormous interest within the banking world. Within a year, many European banks had installed one or more of the machines. Within the next four years, Bankomats were also installed in the United States and Israel.
In 1970, the Metior company was sold to Bofors, and then in 1973, to ABB (ASEA), whereupon manufacturing moved to Vasteras, in central Sweden. Finally, the business was sold to Philips in 1976. Throughout this pioneering period, a total of more than 2,200 Bankomats were manufactured and delivered, including 12 to the U.S.
Since the 1960s, ATMs have moved from punch cards to magnetic stripe cards to chip cards to today's contactless payments using smartphones and watches. The legacy of Securi-Coll continues to influence modern financial interactions. Users are still prompted to authenticate transactions, often by entering a four-digit PIN code. Modern systems, as with the Securi-Coll concept, meticulously record every detail of our transactions.
Why does this matter? Because it demonstrates something crucial about Securitas' DNA: this was never just a guarding company. From its earliest days, Securitas understood that security and technology were inseparable. That insight, embedded in the company's founding vision, would prove prescient as the industry evolved toward intelligent, technology-enabled security solutions.
By 1961, Securitas Alarm had become the leading supplier of ITV systems in Sweden, accounting for 90% of all systems in use. During the 1960s, an increasing number of industries began to acquire ITV installations and Securi-Coll as surveillance tools, leading to Securitas becoming a Swedish export success. It might seem odd that a security company would engage in selling equipment that could reduce its own workforce and, consequently, its revenue. At this time, Securitas had become a technology-driven security company with the purpose of making surveillance work as efficient and cost-effective as possible for clients. The aim was to offer the highest quality security systems possible, a mindset that still exists today.
IV. Ownership Transition & The Melker Schörling Era (1980s)
Every great company has an inflection point—a moment when leadership transition determines whether a promising enterprise will flourish or flounder. For Securitas, that moment came in the turbulent 1980s.
In 1979, the time had come for Erik Philip-Sörensen, the founder of Securitas, to step down. Ideologically, Erik was a strong opponent of hereditary privileges and believed it was only fair that his own sons should compete on equal footing with other potential buyers. Fortunately, Erik's sons, Jörgen and Sven, managed to secure the funds to purchase the company. Subsequently, the trio reached an agreement to split the business into two parts. Jörgen took control of the international operations, which would eventually evolve into G4S, while Sven took charge of the Swedish operations, developing it into what is now known as Securitas.
But the road to success was long and not without its challenges. In the 1970s and 1980s, the security industry suffered from low profitability, driven by inflation and the oil crisis of the 1970s. Severe financial strains kept pushing the company to the brink of collapse.
Sven Philip-Sorensen did not remain for long at the helm of Securitas. By 1983, he had sold his interest in the company. While parts of Securitas were bought up by Group 4, the largest part was taken over by Swedish investment firm Investment AB Latour in 1985.
Investment AB Latour, controlled by Gustaf Douglas, would prove to be the crucial stabilizing force that enabled Securitas' transformation. But the real catalyst for change was a young executive named Melker Schörling.
Melker Schörling (15 May 1947 – 8 December 2023) was a Swedish billionaire businessman and investor, best known for his pivotal role in expanding Securitas into a global security leader and founding the investment holding company Melker Schörling AB. Born in Götlunda, Västmanland County, as the son of a farmer, Schörling graduated from the Gothenburg School of Business, Economics and Law in 1970 with a degree in economics.
In 1987, Melker Schörling became the CEO of Securitas. He made his first major investment in the company the same year. A little more than 10 years later, he ended his operative career to start his company MSAB, Melker Schörling AB.
Upon assuming leadership, he confronted significant initial challenges, including low profitability stemming from an overly diversified business model that encompassed non-core activities such as taxi services and plant care, alongside fragmented regional operations that hindered efficiency. To stabilize and refocus the company, Schörling spearheaded a major restructuring effort in 1987, adopting the mantra "security is good enough" to prioritize core guarding and protective services while divesting unrelated ventures. This involved streamlining the organizational structure by consolidating semi-independent regional units under centralized leadership, increasing the number of branch managers from 5 to 130 to foster a more decentralized, client-oriented approach.
The phrase "security is good enough" may seem unremarkable, but it represented a radical strategic shift. During the 1980s, it became popular among companies to extend their portfolios beyond their core offerings. Driven by volatile markets and changing client preferences, the multiservice model was adopted in several business sectors globally. General Electric ventured into media, ITT into leisure and entertainment, and Volvo into food and pharmaceuticals. Low profitability in the security industry led Securitas to jump on this trend as well, making security services just one part of the company's broader offering, which then expanded to include taxi service, plant care, and wake-up services.
Schörling rejected this diversification entirely. Schörling instilled within the organization a leadership philosophy emphasizing the development of people as allies in service-oriented businesses, alongside a focus on simplicity and clear communication, fundamentally transforming the company's culture. By 1987, amidst various multiservice propositions, a consensus emerged that Securitas should focus on its core business. The mantra, "security is good enough," was adopted—a stance that resonated across the company. This shift entailed a series of realignments, assessing clients, organizational structure, and financial health.
In 1987, Securitas started restructuring for simplicity. Previously, each market operated semi-independently with its own leadership, often branching out into different services. The new approach brought regional leaders directly under Melker's leadership, sharpening their focus on security services. This shift encouraged a decentralized model where regional branches had the freedom to tailor security solutions to the needs of their clients, fostering a stronger client connection and maintaining a flat organizational structure. This change empowered branch managers and frontline staff, giving them autonomy to excel with minimal central oversight. The transformation led to a significant increase in branch managers, from five individuals overseeing national operations to 130 managers, each responsible for their local unit's success.
The management revolution extended to measurement and accountability. On a dark November evening at Securitas' headquarters in 1987, CEO Melker Schörling and management team members Thomas Berglund and Håkan Winberg had just been presented with the month's results on paper. And it was a lot of paper! Thomas took the report home, spread it across the living room floor, and began analyzing the numbers by placing them within a broader context. Standing in a sea of paper, Thomas realized a new reporting method was needed. With 100 offices across Sweden, the growing business was in desperate need of a unified way to measure success. The discussions led to the identification of five crucial areas upon which the company should measure performance.
These five areas were later named "Five Fingers", a nod to the hand's five fingers and a reminder that everybody always has at hand. Focusing on these key measurement areas provided managers with a clearer understanding of their business results, helping to improve operations and enhance client relationships.
In 1989, the Five Fingers became Six Fingers after Securitas made its first acquisitions outside of Scandinavia, necessitating a measurement for the number of outstanding accounts receivable days. Different countries and cultures have varying payment practices in terms of invoice due dates. When expanding geographically, ensuring timely payments became increasingly important. The Six Fingers is still today one of the seven tools in the Securitas Toolbox.
Melker's arrival marked a turning point for the company. He recruited Thomas Berglund (CEO 1992-2005) and Carl-Henric Svanberg (President of the Alarm Division and ASSA 1986-1994), and Securitas seemed to be on the path to success once again.
In 1991, Securitas was listed on the Stockholm Stock Exchange. At the time, the company operated exclusively in Sweden and had some 5,000 employees. Today, the Group is active in 53 countries, with 320,000 employees. The IPO marked the beginning of one of the most aggressive expansion campaigns in European corporate history.
V. The European Expansion & M&A Machine (1990s)
With Melker Schörling's restructuring complete, Securitas was ready to become something far more ambitious than a Swedish security company. The 1990s would see Securitas transform into what the Financial Times would later call "the hardest-working M&A department in the world."
In 1989, the winds carried Securitas to Denmark, Norway, and Portugal, where Securitas would begin its international expansion through key acquisitions. While each was significant in its own right, the Portugal acquisition was particularly special. It might have seemed like a bold move due to the substantial geographic and cultural differences between Sweden and Portugal, but it was, in fact, a carefully planned and strategic decision. The business in Portugal was owned by G4S—Securitas' previous sister company, established by Jörgen Philip-Sörensen after the Securitas split in 1981—making the acquisition somewhat of a reunion of two "related" businesses.
Throughout the 1990s, foreign acquisitions were made in eleven European countries and in the United States.
After taking 1995 off, Securitas rejoined the acquisition trail in 1996, entering new markets, such as Estonia and Poland, and, with the acquisition of DSW Security, Germany. That last acquisition gave Securitas Germany's fourth largest security company, and made Germany one of its largest single markets, accounting for some 20 percent of total sales. The DSW acquisition was topped by a new acquisition in the United Kingdom, of Security Express Armaguard.
The acquisition playbook was straightforward but effective: identify fragmented local markets, acquire the leading regional players, integrate operations rapidly using the Securitas model, and export the company's management philosophy and Six Fingers financial discipline. Local managers retained autonomy within clear parameters, and the company's decentralized structure allowed for rapid integration without crushing local expertise.
But perhaps the most consequential deal of the decade wasn't an acquisition at all—it was a distribution.
In 1994, Securitas acquired Finnish Abloy which was later merged with the Swedish lock company ASSA. In 1997, Securitas Direct was established as an international division, and The Cash Handling Services operation was established as a separate unit within Securitas.
In 1988, Securitas acquired Assa Abloy, a leading lock manufacturer, integrating it into the security portfolio. However, by 1994, recognizing the operational and cultural differences between the manufacturing and service sectors, Securitas distributed Assa Abloy back to its shareholders. This decision not only refocused the company's efforts on its primary security services but also proved financially astute, as the transfer of Assa Abloy generated a substantial dividend. Additionally, it allowed Assa Abloy to thrive independently, increasing its market value significantly and demonstrating the long-term benefits of Securitas' approach to focusing on core competencies.
The company moved into Finland in 1993, acquiring security operations in that country. At the same time, Securitas began focusing more and more on security services—a fast-growing industry in the early 1990s—and merged its Swedish lock-making operations into a joint venture with Finland's Metra, creating Assa-Abloy. The company sold off its part of the joint venture to shareholders in 1994. By then, the company's sales had topped SKr 6 billion.
ASSA ABLOY was distributed to shareholders and became a world leading Lock Group. Today, ASSA ABLOY is worth tens of billions of dollars—a staggering return for Securitas shareholders who held their distributed shares. The spinoff discipline demonstrated would become a hallmark of Securitas' capital allocation philosophy.
Melker Schörling, chairman of the board, said: "Securitas has been a successful Swedish blue-chip company in terms of increasing shareholder value during the last 15 years as a public company. The drivers for development have been and will be specialization and focus on core business. This was the case when Assa Abloy was created and distributed to shareholders in 1994 and when Attendo took the same route in 2000. This is also now the main reason for the proposed creation of three new listed companies."
Following the divestment of Assa Abloy, Securitas began its rapid expansion across Europe—expanding its presence from four to 14 countries in just seven years.
By the end of the 1990s, Securitas had established itself as the undisputed leader in European security services. But the company's ambitions extended far beyond the Atlantic. The American market beckoned—and with it, some of the most storied names in the history of private security.
VI. Conquering America: Pinkerton & Burns (1999–2001)
When Swedish executives announced plans to acquire Pinkerton in 1999, the American security establishment was stunned. Pinkerton wasn't just a company—it was an American institution. Pinkerton is an American private investigation agency and security company established around 1850 in the United States by Scottish-born American cooper Allan Pinkerton and Chicago attorney Edward Rucker. At the height of its power from the 1870s to the 1890s, it was the largest private law enforcement organization in the world. It is currently a subsidiary of Swedish-based Securitas AB.
Pinkerton became famous when he claimed to have foiled the Baltimore Plot to assassinate President-elect Abraham Lincoln in 1861. Lincoln later hired Pinkerton agents to conduct espionage against the Confederacy and act as Lincoln's personal security during the American Civil War. As such, Pinkerton and his agency are sometimes seen as the forerunners of the United States Secret Service.
Securitas's transformation came with its acquisition of famed security services company Pinkerton's Inc. Paying $384 million, Securitas gained control of the 150-year-old U.S. company, founded by Alan Pinkerton in Illinois in 1850. Pinkerton, originally a barrelmaker, became the first private detective in the United States and, with a logo featuring an open eye, spawned the term "private eye." Pinkerton's had been acquired by tobacco company American Brands in 1983.
In 1999, the company was bought by Securitas AB, a Swedish security company, for $384 million, followed by the acquisition of the William J. Burns Detective Agency (founded in 1910), a longtime Pinkerton rival, to create (as a division of the parent) Securitas Security Services USA.
Securitas arrived in the US in 1999 by acquiring Pinkerton—the number one security company in the U.S. In 2000, Securitas acquired Burns, the second largest US security company.
The Burns acquisition followed the Pinkerton playbook. Before its purchase, Burns operated over 320 offices in the United States, Canada, Colombia, Mexico, and the United Kingdom, and its services included providing security guards, background and drug screening, armored transport services, and investigation. It had a client base of over 14,000 commercial, financial, industrial, residential, and government customers and sales of $1.3 billion.
Securitas and Burns International Services Corporation in the US, with total annual sales of about SEK 13.3 billion (USD 1.5 billion), signed a definitive merger agreement for Securitas to acquire Burns for a consideration of SEK 4.1 billion (USD 457 million). The new group was expected to have combined annual sales of about SEK 48 billion (USD 5.3 billion) and have about 210,000 employees.
"Since summer 1999, our American guarding operations have been reorganized with a clear focus on local responsibility for growth and profitability. After the acquisitions of APS and First Security in January 2000, the number of regions has been increased, and these acquisitions are now integrated and operations are developing according to plan. We are now ready to take a new large step, and the acquisition of Burns will give us an excellent position from which to lead the development of the American security market."
After the Securitas purchase, Burns teamed up with Pinkerton's Inc.—another well-known U.S.-based security firm purchased by Securitas in March 1999; together, the firms operated over 600 U.S. offices, had 125,000 employees, and realized revenues of $2.5 billion. The strategic positioning of Burns and Pinkerton left only one other major competitor in the U.S. security market—Wackenhut Corporation.
Based in Stockholm, Securitas became the world's leading provider of security services, with a 7 percent market share in the highly fragmented industry. Through its acquisitions of Pinkerton's and Burns International, in 1999 and 2000, respectively, Securitas has also become the leading security services firm in the United States, with more than 17 percent of the total market.
But Securitas wasn't done. Securitas acquired Loomis, Fargo & Co. and became a major player in the U.S. cash handling market.
Burns also owned 49 percent of the shares in Loomis Fargo Inc, the second largest Cash In Transit operator in the USA with annual sales of about $400 million and an operating margin of about 7 percent.
In May 2001, Swedish securities services group Securitas AB agreed to buy the remaining 51 percent of Loomis Fargo & Co. for $102 million. On November 16, 2006, Securitas AB chief executive officer announced the company's intention to split into several independent, specialized security companies, with its cash-handling service division adopting the name Loomis throughout its international network. By the end of June 2007, the transition to the new identity had been completed.
The cultural integration challenge was significant. Swedish management philosophy—decentralized, consensus-oriented, focused on employee development—met American security culture with its hierarchical traditions and union relationships. Despite the ambitious expansions, Securitas' journey to the United States was not without its challenges. The transition brought about a period of negotiation with American trade unions. Securitas enjoyed a cordial relationship with European unions, a rapport that extended to the service industry unions in the U.S., led at the time by Andy Stern, the president of the Service Employees International Union.
The plan to adopt the Securitas name was announced internally two years ago in an effort to bring not just Burns and Pinkerton's under a single name, but also the likes of American Protective Services, First Security Services, Doyle Security Services, Smith Security Services and APG—companies Securitas bought between 1999 and 2000.
The American conquest transformed Securitas from a European champion to a genuine global powerhouse. But managing such a sprawling empire would require rethinking the company's entire structure—setting the stage for the most dramatic corporate restructuring in Securitas history.
VII. Strategic Spin-offs: The 2006-2008 Restructuring
By the mid-2000s, Securitas had become a conglomerate of specialized security businesses—guarding, cash handling, residential alarms, commercial systems integration. The question wasn't whether these businesses were valuable; it was whether they could reach their full potential under a single corporate umbrella.
Securitas AB, a world leader in security, proposed to transform three of its divisions into independent, specialized security companies: Loomis Cash Handling Services AB, Securitas Direct AB and Securitas Systems AB. The three new companies would, subject to a decision by an extraordinary general meeting proposed for September 25, 2006, be distributed to shareholders by way of a dividend and listed on the O-list of the Stockholm Stock Exchange immediately thereafter. Securitas has grown into a world leader in security with more than 200,000 employees and sales of BSEK 66, by organic sales growth and acquisitions during the last 20 years.
The company, based in Stockholm, would spin off three divisions: the armored car unit, Loomis Cash Handling; the burglar alarm unit, Securitas Direct; and the commercial alarm division, Securitas Systems.
The decision to split the company, which began as a family business in 1934 and today has sales of 66 billion kronor and 200,000 employees in 20 countries, reflected an increase in demand for more specialized security services from a client base that ranged from multinational companies like Pfizer to government agencies and homeowners. "Customers in the petrochemicals industry and in a shopping mall need very different things," Berglund said. "Twenty years ago, people talked about multi services. Today it's obvious that doesn't work, and we intend to stay ahead."
An Extraordinary General Meeting on September 25, 2006, decided to distribute Securitas Systems and Securitas Direct to shareholders by way of a tax-free dividend. Both were listed on the O-list of the Stockholm Stock Exchange on September 29, 2006.
"The divisions had reached a sufficient size and a level of specialization within each market," said Guay. "To keep the advantages we had, independence was important for us. Right now guarding is the engine of Securitas AB. We started the systems integration specialization in 2001... We were $250 million then, today we're closer to about a $900 million entity. But we were still a tech group inside of a guarding company. We know customers need specialization and knowledge." Industry history buffs will remember that both guard firm Group 4 Securicor and access control giant Assa Abloy were once Securitas companies.
While many companies consider divesting parts of their business only as a last resort, Securitas proactively chose to distribute these divisions to its shareholders after considerable thought and debate. Much like the nurturing of Assa Abloy, this move demonstrated that Securitas had effectively developed three robust businesses capable of thriving independently. On March 5, 2007, Alf Göransson succeeded Thomas Berglund as the new CEO and President of Securitas, taking over during the midst of the spinoff of Securitas Security Systems, Securitas Direct, and Loomis.
On November 26, 2007, Loomis announced the sale of Loomis Cash Management Ltd, its cash handling operation in the United Kingdom, to Vaultex UK Ltd jointly owned by HSBC Bank plc and Barclays Bank plc, resulting in a loss of approximately 160 million SEK. In 2008, Loomis was distributed to the Securitas shareholders and listed at Nasdaq OMX Stockholm as Loomis AB.
Further shaping the ownership structure, in 2006, Securitas spun off several divisions, including Loomis Cash Handling Services AB, Securitas Direct AB (now Verisure), and Securitas Systems AB.
The irony, of course, is that Securitas would later buy back electronic security capabilities through its 2022 Stanley Security acquisition. Securitas acquires Stanley Security, the Electronic Security Solutions business from Stanley Black & Decker Inc. for a cash purchase price of US $3,200 million on a debt and cash free basis. According to Reuters, this will be the company's biggest acquisition to date and essentially Securitas will be buying back a company that it originally floated on the Stockholm stock exchange in 2006 called Securitas Systems, then changed name to Niscayah in 2008, before Stanley Black & Decker acquired the company in 2011.
This wasn't strategic inconsistency—it was disciplined capital allocation. In 2006, Securitas Systems was a subscale player in a fragmented market. By 2021, Stanley Security had grown into a $1.7 billion business with global reach and recurring revenue streams. The company was buying back a much more valuable asset than it had spun off.
Lehman Brothers' collapse in 2008 triggered a stock market crash, putting the entire financial system at risk. Clients faced business declines and initiated immediate cost-cutting efforts. As a response, Securitas prioritized portfolio protection, customer support, and strategic acquisitions at what had become favorable prices.
VIII. Rebuilding & UK Expansion (2010-2015)
The post-financial-crisis years saw Securitas emerge leaner and more focused. With the spin-offs complete, the company could concentrate entirely on its core mission: becoming the world's leading security services provider.
In 2011 Securitas made 19 major acquisitions. Securitas acquired a major security operation in the United Kingdom, making it the second largest player in the British market with a market share of nearly 20 percent. Securitas strengthened its position in the US government security services market, and invested in technical competences. Securitas completed several important acquisitions in Latin America.
The UK market became a particular focus. Building on its historical presence dating back to Erik Philip-Sörensen's international ventures, Securitas pursued an aggressive consolidation strategy in Britain.
The 2010 acquisition of Reliance Security Group and the 2011 acquisition of Chubb Security Personnel established Securitas as the second-largest security company in the United Kingdom. The company also expanded its government services capabilities, recognizing the growing importance of public sector contracts.
In 2013, Securitas acquired Pinkerton Government Services, which provides cleared security services to governmental agencies requiring Department of Defense or Department of Energy security clearance. This government services division became known as Securitas Critical Infrastructure Services (SCIS), representing a strategic entry into the high-security, high-margin government contracting space.
Throughout this period, Securitas maintained its focus on operational efficiency. The company's Six Fingers financial model provided discipline, while the decentralized management structure allowed regional leaders to adapt to local market conditions. Organic sales growth remained positive, averaging 3-5 percent annually in key markets despite economic headwinds.
Yet even as Securitas strengthened its traditional guarding business, the security industry was transforming. Technology was no longer a peripheral concern—it was becoming central to how security services would be delivered. The company that had invented the ATM would need to embrace technology once again if it hoped to remain the industry leader.
IX. The Technology Pivot: Electronic Security Acquisitions (2016-2020)
The mid-2010s marked a strategic inflection point. After years of focusing primarily on human-centric guarding services, Securitas began systematically building its technology capabilities through targeted acquisitions.
Securitas completed four major acquisitions in Europe, North America and Latin America: Diebold's Electronic Security, North America (electronic security solutions); Infratek Security Solutions, Norway (electronic security solutions); Draht+Shutz, Germany (electronic security solutions); JC IngenierĂa, Chile (electronic security systems).
From 2017, a large part of the information from client sites is reported in a digital format. This gives Securitas a unique opportunity to gather all possible data—from incident reports, camera feeds, sensors and access control—and to combine it with data from external sources.
The strategic transformation ambition was formalized: to double security solutions and electronic security sales by 2023 compared with 2018. This wasn't incremental improvement—it was a fundamental repositioning of what Securitas would become.
The logic was compelling. Traditional guarding services faced structural margin pressure from labor costs and wage inflation. Technology-enabled solutions, by contrast, offered higher margins, recurring revenue streams, and scalability. A security officer could only be in one place at a time; a remote monitoring center could surveil thousands of sites simultaneously.
More fundamentally, the nature of security itself was changing. Physical threats increasingly overlapped with cyber threats. Access control systems became IT assets. Video surveillance evolved from passive recording to active AI-powered analytics. Clients didn't want guards or technology—they wanted integrated security solutions that combined both.
A strategic transformation ambition was set—to double security solutions and electronic security sales by 2023, compared with 2018.
The 2018-2020 period saw acquisitions of Alphatron Security Systems in the Netherlands, Automatic Alarm in France, and Kratos Public Safety and Security in the US. Each deal added specific capabilities—monitoring expertise, systems integration skills, government security credentials—that Securitas needed for its technology transformation.
But these bolt-on acquisitions were preparatory. The real bet was coming—a transformative deal that would fundamentally change Securitas' profile from a guarding company with technology capabilities to a technology-enabled security solutions partner. That deal would be the $3.2 billion acquisition of Stanley Security.
X. Magnus Ahlqvist Era & Transformation (2018-Present)
On March 1, 2018, a new era began at Securitas. Magnus Ahlqvist assumed the position as President and CEO of Securitas AB, and continued to hold the position as Divisional President Securitas Services Europe until March 2019.
Ahlqvist came to Securitas from outside the traditional security industry—a deliberate choice that signaled the company's intent to transform itself. Since September 1, 2015, Magnus Ahlqvist was Divisional President of Securitas' Security Services Europe and a member of Securitas' Group Management. Magnus came to Securitas from Motorola Mobility, a Google company before it was taken over by Lenovo, where he was Corporate Vice President of EMEA and India. Before that, he worked 12 years for Sony Ericsson and Sony Mobile Communications. His assignments were, among others, President of Sony Mobile Communications in China for three years, Vice President and General Manager Spain & Portugal and Telefónica and General Manager in Canada.
Magnus Ahlqvist holds a Master of Science in Economics and Business Administration from the Stockholm School of Economics, and a leadership exam from Harvard Business School. He is the Chair of the International Security Ligue.
With President and CEO Magnus Ahlqvist at the helm, Securitas embarked on a journey in 2018 to formulate a new strategy and an underpinning organizational transformation.
Partnering with IMD, a five-year strategy was formulated to transform Securitas from a security services provider to an intelligent, protective solutions partner.
In fact, as Ahlqvist explains, the sheer size of Securitas was one of the biggest challenges to this period of transformation. To succeed, "it is important that you have clarity in terms of where you want to go," Ahlqvist said. It was also vital to listen to employees.
Another element of the transformation journey that brought colleagues together was the development of Securitas' purpose. As part of the strategy development, a workstream led by Ahlqvist sought to capture the essence of the organization. Hundreds of colleagues were engaged in over 45 global workshops to define a common purpose. After several iterations, and with board approval, Securitas articulated the company's core purpose—we help make your world a safer place. The announcement was made to investors during Capital Markets Day in December 2019.
The transformation went beyond vision statements. "We will now continue the execution of our strategy by launching a business transformation program in Europe and Ibero-America. This program aims to sharpen our capabilities at scale." The business transformation program in Europe targets an increase of the European operating margin to around 6.5 percent by 2024. In Security Services Ibero-America, the business transformation program targets an increase of the operating margin to around 6.0 percent by 2024.
In May 2024, Securitas earned the EFMD Excellence in Practice Gold Award for Organizational Development, recognizing the five-year strategy and transformation as a best practice in business. This accolade, along with the enduring impact of the company's efforts, set a strong foundation for future growth and innovation, ensuring that Securitas remains at the forefront of the security industry.
Under Ahlqvist's leadership, Securitas made strategic portfolio decisions, including divesting Securitas Argentina in 2023. Another cornerstone of the strategy is to continuously assess business mix and presence to further sharpen the company's position as the leading security solutions and technology company. As a result, Securitas disposed Securitas Argentina in 2023 with positive margin and cash flow effects going forward.
In 2022, Securitas reached an important sustainability milestone, becoming the first major company in the industry committing to the Science Based Targets initiative (SBTi).
But the defining moment of the Ahlqvist era would be the single largest acquisition in Securitas history—the Stanley Security deal that would fundamentally transform the company's technology capabilities.
XI. The Stanley Security Acquisition: Industry-Defining Move (2021-2022)
On December 8, 2021, Securitas announced a deal that would reshape the global security industry. Securitas entered into an agreement to acquire the Electronic Security Solutions business from Stanley Black & Decker Inc. ("Stanley Security") for a cash purchase price of $3,200 million on a debt and cash free basis. Stanley Security is a highly reputable provider of electronic security solutions with operations in 12 markets globally, expected to generate sales of nearly $1,700 million in 2021, of which around 40% is recurring revenue. The future of security is built around the combination of global presence, connected technology and intelligent use of data and, together with Stanley Security, Securitas is perfectly placed to win in this environment. Significant commercial synergy opportunities with over 500,000 existing as well as new clients, adds significant scale and innovation potential in the attractive $70 billion electronic security market.
Headquartered in Indianapolis in the U.S., STANLEY Security has an inspiring 30-year history of protecting its clients worldwide through a portfolio of tech-enabled security services. The company is trusted by customers across the globe for its innovative SaaS technology, seamless installation and integration, reliable maintenance, 24/7 monitoring and insightful analytics. Today, STANLEY Security is a highly recognized provider of tech-enabled security services worldwide, with approximately 8,000 employees operating through approximately 200 locations and 16 monitoring centers in the U.S., Canada, Mexico, United Kingdom, France, Sweden, Belgium, the Netherlands, Denmark, Finland, Norway and Ireland.
"This means that Securitas becomes an exceptional player in the security industry. Together with Stanley Security, our largest acquisition in history, the profile of Securitas changes from a leading guarding company with electronic security and solutions capabilities, to a leading intelligent security solutions partner," says Magnus Ahlqvist. "The future of security is built around the combination of global presence, connected technology and intelligent use of data and, together with Stanley Security, Securitas is perfectly placed to win in this environment."
The acquisition closed on July 22, 2022. The highly anticipated acquisition of STANLEY Security and Healthcare accelerates Securitas' transformation journey toward technology-based solutions and its ambition to position itself as an outstanding global security and safety partner. Securitas accelerates its transition toward technology-based solutions. The company significantly strengthens its technology and expertise in key markets and the acquisition enables Securitas to become a stronger business partner to support its clients globally.
"Bringing together our two great companies is an industry-defining event, and going forward approximately 50% of our profit contribution is expected to be generated through higher-margin technology and solutions sales."
The acquisition was funded through an underwritten bridge facility provided by SEB which was refinanced after completion by a mix of equity and long-term debt. The equity component of the refinancing came from the proceeds of a rights issue amounting to $915 million, to be determined in SEK when the rights issue was resolved.
The strategic transformation ambition—to double the security solutions and electronic security sales by 2023, compared to 2018, was discontinued as the ambition was fulfilled by the acquisition of STANLEY Security.
Following the acquisition of STANLEY Security, that was completed and consolidated into Securitas as of July 22, 2022, the Group defined new financial targets of 8-10 percent technology & solutions annual average real sales growth, 8 percent Group operating margin by year-end 2025 and a net debt to EBITDA ratio below 3.0x.
The integration proceeded according to plan. Securitas continued a period of important work related to systems and support services which continued in 2024. The company achieved the STANLEY Security acquisition $50 million cost synergy target in the quarter, mainly impacting North America.
Based on the leading global market position and unique client offering, Securitas delivered healthy organic sales growth of 8 percent in Technology in the second quarter. Today, the company has more than SEK 1.25 billion of recurring monthly revenue in the strategically important and high-margin monitoring and maintenance business which, together with effectively driving best practices and executing cost synergies, have supported a significantly increased operating margin since the closing of the acquisition. With the majority of the integration activities completed in North America and with good progress in Europe, Securitas can accelerate focus on commercial activities to continue growing the business going forward.
XII. Industry Context: The Global Security Market
To understand Securitas' strategic positioning, one must grasp the scale and structure of the global security market. This is a truly massive industry—and one undergoing rapid transformation.
The market was valued at US$257.9 billion in 2019 and is expected to reach approximately US$400 billion by 2024, with a CAGR of 9%. The main players within this concentrated market include Securitas, G4S, Allied Universal, Tops Group Total Security Solutions and Brinks Home Security.
The Physical Security Services Market is expected to reach USD 119.24 billion in 2025 and grow at a CAGR of 4.75% to reach USD 149.19 billion by 2030.
The industry divides broadly into two segments: security services (primarily guarding) and security technology/equipment. Both are evolving rapidly.
The physical security services market size stood at USD 119.24 billion in 2025 and is forecast to reach USD 149.19 billion by 2030. The expansion is underpinned by the shift from guard-centric models to technology-enabled ecosystems that blend manned services with AI analytics, cloud video management, and cyber-physical convergence. Service providers weather economic cycles well—a point underscored by Allied Universal's stable B3 corporate family rating even after multiple leveraged acquisitions, highlighting the sector's recession-resilient profile. Demand is further buoyed by post-pandemic smart-facility retrofits, stricter labor-law enforcement that favors licensed operators, and rapid uptake of remote monitoring services that lower manpower intensity while expanding coverage.
By component, services accounted for 59.0% of the physical security services market share in 2024; solutions are projected to post the fastest 5.1% CAGR through 2030. Solutions captured 41% of 2024 revenue while services retained 59.0% share. However, the solutions segment is set to clock a 5.1% CAGR, outpacing legacy manpower services as enterprises embrace integrated platforms that blend analytics, access, and incident management.
Securitas, for instance, derived 32% of 2024 sales from technology and solutions, signaling a pivotal migration toward higher-value offerings.
The market is characterized by several structural features that favor large, well-capitalized players:
Labor intensity: Traditional guarding is fundamentally a labor business. Security guards represent the company's primary cost and its primary service delivery mechanism. This creates both challenges (wage inflation, labor availability) and opportunities (technology can substitute for some labor, improving margins).
Fragmentation: Despite consolidation, the security market remains highly fragmented. Thousands of small regional players compete alongside global giants. This creates continuous acquisition opportunities for companies with strong integration capabilities.
Recurring revenue: Both guarding contracts and monitoring services generate recurring revenue streams. Client switching costs are moderate, but multi-year contracts and service quality create stickiness.
Technology convergence: The boundary between physical and cyber security is blurring. Access control systems are IT assets. Video surveillance generates data. AI enables predictive security. Companies that can integrate across these domains command premium pricing.
XIII. Competitive Landscape
The global security services market is dominated by a handful of major players, with two clear leaders: Allied Universal and Securitas.
Allied Universal's recently completed acquisition of G4S is a deal of historic proportions for the guard services industry. On April 6th, with all the approval hurdles finally cleared, Allied Universal bought G4S. The acquisition was historic: creating the largest security company in the world with sales over $18 billion coming from 85 countries, making it almost twice as large as Securitas, its nearest competitor. Its 800,000 employees make Allied the third largest employer in North America and the seventh largest employer in the world.
After the end of the U.S. bidder's drawn-out takeover battle with Canada's GardaWorld, whose last bid was £3.7bn or 235p-per-share, G4S has agreed to a £3.8bn or 245p-per-share takeover offer from Allied Universal, which is backed by the Canadian pension fund Caisse de Dépôt et Placement du Québec and Warburg Pincus. The acquisition will create a global security behemoth with 760,000 employees and combined revenues of $18 billion. The new company will be one of the world's largest employers in the private sector.
Allied Universal has a not unimpressive record of acquisitions in the last decade. In fact, with the acquisition of 70 companies before G4S, Allied successfully turned its $12 million business from 1996 to a more than $8 billion business today, having a fond strategy for making the most out of each M&A deal.
The competitive dynamics vary by region:
North America: A virtual duopoly between Allied Universal and Securitas, with Securitas maintaining approximately 20% market share. Both companies compete aggressively for large enterprise clients while also serving the SME segment. Securitas' Pinkerton brand provides differentiated corporate risk management and investigation services.
Europe: Securitas holds leadership positions in most major European markets. The company benefits from its long history and deep local expertise in markets from Scandinavia to Iberia. Prosegur is a significant competitor in Southern Europe and Latin America.
Asia-Pacific: SECOM of Japan dominates Asian markets. Neither Allied Universal nor Securitas has achieved significant scale in Asia, representing both a challenge and an opportunity.
Allied Universal's acquisition of Unified Command exemplifies how incumbents are embedding technology to protect margins and differentiate. Services remain indispensable for high-touch assignments, yet margins face wage and compliance pressures. Providers are mitigating this by bundling AI analytics and remote operations within guarding contracts, enabling outcome-based pricing that aligns with client risk appetites.
The industry's future competitive battleground is increasingly technology-centric. Companies that can successfully integrate human security services with advanced technology—AI-powered video analytics, remote monitoring, access control systems, cyber-physical integration—will command premium pricing and superior margins. This is precisely the strategic territory Securitas is claiming through its Stanley Security acquisition and ongoing digital transformation.
XIV. Strategic Playbook: Business & Strategic Lessons
Securitas' 90-year journey offers a masterclass in strategic transformation, disciplined capital allocation, and acquisition-driven growth. Several key lessons emerge from this analysis.
Lesson 1: Focus Is a Feature, Not a Bug
The "security is good enough" philosophy that Melker Schörling introduced in 1987 represents one of the most important strategic decisions in Securitas' history. When the company divested taxi services, plant care, and other non-core businesses to concentrate entirely on security, it created the foundation for everything that followed.
This lesson repeated itself with the ASSA ABLOY distribution in 1994 and the 2006-2008 spin-offs. Rather than diversifying, Securitas created value by enabling focused businesses to thrive independently—and benefiting shareholders in the process.
Lesson 2: Decentralized Execution with Centralized Standards
The Securitas model combines local autonomy with rigorous financial discipline. Branch managers have authority to serve clients and make operational decisions. But the Six Fingers financial model provides consistent measurement and accountability across the organization. This approach scales remarkably well—from five Swedish offices in 1987 to 44 countries today.
Lesson 3: Acquisitions Require Integration Discipline
Securitas has made hundreds of acquisitions across its history. The key to success hasn't been deal volume—it's been integration discipline. The company brings acquired businesses into the Securitas management model quickly, exports best practices, and achieves synergies while retaining local expertise. The "hardest-working M&A department in the world" reputation is earned through execution, not just deal-making.
Lesson 4: Technology and Human Services Are Complements, Not Substitutes
From inventing the ATM in 1968 to acquiring Stanley Security in 2022, Securitas has consistently recognized that technology enhances rather than replaces human security services. The company that might have seen video surveillance as a threat to its guarding business instead embraced it as a value-creation opportunity.
Lesson 5: Timing Matters
The Stanley Security acquisition illustrates perfect timing. Securitas spun off Securitas Systems in 2006 when it was a subscale player. It repurchased enhanced electronic security capabilities in 2022 after Stanley had built those businesses into a $1.7 billion enterprise with global reach and recurring revenue. The company bought back a much more valuable asset than it had distributed.
Porter's Five Forces Analysis
Threat of New Entrants (LOW): High capital requirements, established client relationships, regulatory licensing, and scale economies create significant barriers. New entrants typically compete locally; achieving Securitas' global scale would require enormous investment.
Bargaining Power of Suppliers (LOW): Labor is the primary "supply," and while labor markets can be tight, security companies have substantial bargaining power given their scale and employer brand.
Bargaining Power of Buyers (MODERATE): Large enterprise clients can negotiate aggressively, but switching costs exist. SME clients have less bargaining power. The shift toward integrated solutions increases client stickiness.
Threat of Substitutes (MODERATE-HIGH): Technology represents both a substitute threat and an opportunity. AI-powered security, autonomous monitoring, and advanced access control could reduce demand for human guarding. However, companies that integrate these technologies—like Securitas—can capture value rather than losing it.
Industry Rivalry (HIGH): Competition between Allied Universal and Securitas is intense. However, the market is large enough to support multiple major players, and the industry remains fragmented outside the top tier.
Hamilton Helmer's 7 Powers Framework
Scale Economies: Securitas benefits from scale in procurement, technology investment, and administrative overhead distribution. However, the labor-intensive nature of security services limits scale advantages compared to technology businesses.
Network Effects: Limited direct network effects in traditional guarding. However, technology platforms create some network effects through data accumulation and AI model training.
Counter-Positioning: Securitas' technology pivot represents counter-positioning against pure-play guarding competitors who cannot easily replicate the integrated solutions model without significant investment and organizational transformation.
Switching Costs: Moderate switching costs from multi-year contracts, integration with client systems, and relationship-based service delivery. Technology integration increases switching costs over time.
Branding: The Pinkerton brand carries historic significance and premium positioning for investigation and corporate risk management services. The Securitas brand is well-established in Europe and increasingly recognized in North America.
Cornered Resource: Securitas' global footprint, accumulated client data, and integrated service capabilities represent increasingly difficult-to-replicate resources.
Process Power: The Securitas Toolbox management methodology and Six Fingers financial model represent institutionalized processes that enable consistent execution across geographies and acquisitions.
XV. Current Performance & Financial Position
The strategy to build a more scalable Securitas focused on technology and digital capabilities is yielding results. Securitas has delivered 19 quarters of consecutive operating margin improvement and has strengthened its operational cash flow generation consistently over time. In the third quarter, the company delivered a record-high operating margin and achieved 19 percent growth of earnings per share. Today's Securitas is a more resilient and future-proof company, well-positioned to continue to generate long-term value for shareholders.
The company achieved an important milestone in the third quarter, delivering an operating margin exceeding 8 percent. This is the result of strong strategic execution and performance across all our business segments.
Operating Margin: 8.1% in Q3; adjusted margin 8.3%. EPS Growth: 19% real change in Q3. Operating Cash Flow: Above 100% of operating income in Q3. Net Debt-to-EBITDA Ratio: 2.2 times. Technology & Solutions Margin: Improved by 50 basis points to 11.7%. Security Services Margin: Improved by 30 basis points to 6.9%. North America Organic Sales Growth: 6% in Q3. Europe Operating Margin: Improved by 70 basis points to 8.4%. Ibero-America Organic Growth: 5% in Q3.
Free cash flow generation was strong at SEK 2.65 billion, up 13% year-over-year and well above consensus estimates of SEK 1.98 billion. This performance helped reduce the net debt to EBITDA ratio to 2.2x from 2.4x in the first half.
The company achieved an adjusted EBITA margin of 8.1% in the quarter, up 60 basis points year-over-year and above the consensus estimate of 7.8%. This marks the first time Securitas has met its target of margins exceeding 8%.
The technology growth story continues to develop. The Technology & Solutions segment reported a sales growth of 4%, which is below the company's target of 8% to 10%, indicating a need for further improvement.
Late in the fourth quarter, Securitas signed a put option agreement to divest its airport security business in France due to the limited opportunity to pursue its long-term strategy at a healthy financial performance.
In January 2025, the company started to execute additional identified opportunities to run the business at a structurally lower cost level which will deliver SEK 200 million in annualized savings by the end of 2025, primarily in Europe. The total cost of this business optimization program is SEK 225 million.
XVI. Bull Case & Bear Case
The Bull Case
Technology Transformation Succeeding: With 19 consecutive quarters of margin improvement and Q3 2025 operating margin exceeding 8% for the first time, Securitas is demonstrating that its transformation strategy works. The strategy to build a more scalable Securitas focused on technology and digital capabilities is yielding results. Securitas has delivered 19 quarters of consecutive operating margin improvement and has strengthened its operational cash flow generation consistently over time. In the third quarter, the company delivered a record-high operating margin and achieved 19 percent growth of earnings per share.
Long-term Margin Expansion Runway: The company has stated a long-term operating margin ambition of greater than 10%, implying significant additional upside from current levels. Technology and solutions already generate 11.7% margins—as this segment grows as a percentage of the mix, group margins should benefit.
Deleveraging Ahead of Schedule: The company generated solid operating cash flow in the third quarter, and nine months into 2025 improved cash generation substantially compared to last year. This supported continued deleveraging, resulting in a net debt to EBITDA ratio of 2.2. This is well below the target of less than 3.0x and provides financial flexibility for future investments or capital returns.
Resilient Business Model: Clients navigate a complex risk landscape where Securitas' long-term partnership approach, supported by deep security expertise, a global presence and AI-enabled digital capabilities, makes it the preferred security partner in the market. In a time marked by global uncertainty, geopolitical risks and macro volatility, the resilient business model has consistently demonstrated its strength by delivering local security services close to clients. Despite ongoing uncertainty, there was no material impact from shifts in the global trade landscape in the third quarter.
Favorable Industry Dynamics: Growing security concerns globally, increasing corporate spending on safety, and the shift toward integrated security solutions all favor well-capitalized leaders like Securitas.
The Bear Case
Technology Growth Below Target: The Technology & Solutions segment reported a sales growth of 4%, which is below the company's target of 8% to 10%, indicating a need for further improvement. If technology growth continues to underperform targets, the margin improvement story could stall.
Allied Universal Competition: The Allied Universal-G4S combination created a competitor nearly twice Securitas' size. The acquisition was historic: creating the largest security company in the world with sales over $18 billion coming from 85 countries, making it almost twice as large as Securitas, its nearest competitor. Aggressive competition, particularly in North America, could pressure pricing and market share.
Labor Cost Inflation: As a labor-intensive business, Securitas remains exposed to wage inflation. If labor costs rise faster than the company can increase pricing or improve productivity, margins could suffer.
Technological Disruption: AI and automation could accelerate faster than expected, disrupting the human-technology hybrid model that Securitas champions. Pure technology players could capture share of the security market.
Integration Execution Risk: The Stanley Security acquisition represents significant integration complexity. While progress has been positive, any stumbles could impact financial performance and strategic momentum.
Currency Exposure: As a Swedish company reporting in SEK with substantial operations in USD, EUR, and other currencies, Securitas faces meaningful currency translation risk.
XVII. Key Performance Indicators to Monitor
For investors tracking Securitas' ongoing transformation, three KPIs deserve particular attention:
1. Technology & Solutions Real Sales Growth Rate
This measures the organic growth of Securitas' higher-margin technology business. The company has targeted 8-10% annual average real sales growth in this segment. The segment reported sales growth of 4% in Q3 2025, which is below the target range. Sustained underperformance here would signal challenges with the technology transformation thesis.
Why It Matters: Technology and solutions carry significantly higher margins than traditional guarding (11.7% vs. 6.9% for security services). The rate at which this segment grows determines how quickly the overall business mix shifts toward higher-margin revenue—and therefore how quickly group margins can improve.
2. Group Operating Margin
The company has targeted an 8% operating margin by year-end 2025, with a long-term ambition above 10%. The company achieved an important milestone in the third quarter, delivering an operating margin exceeding 8 percent.
Why It Matters: Operating margin is the ultimate measure of Securitas' transformation success. It captures the combined impact of mix shift toward technology, cost efficiency programs, portfolio optimization, and pricing discipline. The path from sub-6% margins a few years ago to 8%+ today—and potentially 10%+ in the future—represents the core value creation thesis.
3. Net Debt to EBITDA Ratio
Cash flow generation supported continued deleveraging, resulting in a net debt to EBITDA ratio of 2.2. The company targets a ratio below 3.0x.
Why It Matters: Leverage matters for two reasons. First, it indicates financial health and the ability to weather economic downturns. Second, as leverage declines, Securitas gains flexibility for capital returns (dividends, buybacks) or additional acquisitions. The pace of deleveraging signals both operational cash generation and management discipline.
XVIII. Conclusion: The Next Chapter
From night watchmen patrolling the snowy streets of southern Sweden in the 1930s to AI-enabled security solutions protecting enterprises across six continents today, Securitas' 90-year journey is a remarkable story of transformation, discipline, and vision.
Erik Philip-Sörensen's founding insight—that technology and human expertise together create superior security—remains as relevant today as when he invented the ATM system in 1968. Melker Schörling's "security is good enough" focus provided the strategic discipline that enabled global expansion. And Magnus Ahlqvist's current transformation is repositioning Securitas for the technology-driven future of the security industry.
In a time marked by global uncertainty, geopolitical risks and macro volatility, our resilient business model has consistently demonstrated its strength by delivering local security services close to our clients.
The company has taken important steps on the journey to transform Securitas into the leading intelligent security partner, strengthened the operating margin to 6.9 percent (6.5) and improved earnings per share by 15 percent in 2024. Management remains committed to achieving the target of an 8 percent operating margin by the end of 2025.
The challenges ahead are real. Allied Universal's massive scale, technology growth that trails targets, and the ever-present risks of labor inflation and economic uncertainty all require attention. But Securitas has navigated challenges before—the 1970s oil crisis, the 2008 financial crisis, the COVID-19 pandemic—and emerged stronger each time.
What's different now is the clarity of purpose. Securitas isn't trying to be everything to everyone. It's focused on becoming the world's leading intelligent security partner—combining human expertise, global presence, and technology capabilities in an integrated offering that no pure-play competitor can match.
The third quarter performance confirms a material profitability improvement in both technology and solutions, and in security services.
Ninety years after Erik Philip-Sörensen glimpsed families through frosty windows and felt the weight of his responsibility as society's protector, Securitas continues that mission at a scale he could never have imagined. The night watch has become a global enterprise. The values remain unchanged: Integrity, Vigilance, Helpfulness.
The three red dots still stand guard.
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