SoftBank in Talks to Buy Allied Universal at Potential $18 Billion Valuation
Key Facts
SoftBank Group is in preliminary talks to acquire security services company Allied Universal in a potential deal that the Wall Street Journal said could value the company at about $18 billion if completed. That valuation excludes the company's debt, rather than representing a total that includes the financial obligations attached to its business. According to Reuters, discussions remain at an early stage, and no final decisions have been made on an acquisition or a potential price. The group's interest in the company is linked to the possibility of using robots in the future to replace some workers in certain security roles, the agency reported. That places the talks in the context of SoftBank's interest in robotics and physical artificial intelligence, which Masayoshi Son has described as the group's next frontier.
The potential value differs when Allied Universal's debt is included, with Investing.com citing Bloomberg as reporting that its traded debt totals about $12 billion. Adding that debt could bring the potential total deal value close to $30 billion, according to the report carried by the website. The larger estimate thus includes both the value of the business and its associated traded debt, while the Wall Street Journal valuation excludes debt. The newspaper made its estimate conditional on the acquisition being completed, saying the deal "could value the company at about $18 billion." The price at which any agreement might be reached remains among the issues on which Reuters said no final decision had been made in the ongoing discussions.
On the operational side, Reuters reported that SoftBank would seek to replace some employees with robots in the future if it acquires Allied Universal. That approach concerns certain security tasks within the company's operations, with implementation remaining contingent on completion of the potential acquisition the group is considering. Allied Universal also has a growing presence in the data center sector, according to the agency, another part of its business alongside security services. The company supports the development and operation of those facilities, extending its involvement in the sector across both construction and operational activities. The combination of security services and a data center presence at the company SoftBank is considering buying comes alongside the group's stated push into physical artificial intelligence.
The talks target a company with an extensive international footprint, with the corporate profile published on the G4S website putting Allied Universal's annual revenue at about $23 billion. The security group's operations span more than 100 countries and territories, according to the same official profile, which outlines the scale of its business. G4S represents Allied Universal's international business, according to its website, within that presence across multiple markets. Its ownership by the group stems from Allied Universal's acquisition of the London-based global security company in 2021. The business attracting SoftBank's interest therefore encompasses the security group that owns G4S, including its international operations and data center-related services.
On current ownership, Investing.com said Warburg Pincus and Canadian pension fund La Caisse are Allied Universal's main financial backers. The target company's background thus includes institutional investors alongside its earlier expansion through the purchase of G4S and incorporation of its international operations. SoftBank, meanwhile, has announced a definitive agreement to buy ABB Group's robotics business for a total purchase price of $5.375 billion. That agreement provides specific context for the group's interest in robotics, alongside Reuters' reporting on plans for their potential use in security services. The announced ABB agreement concerns the robotics business itself, while the current preliminary talks concern a security company in which SoftBank would use robots for some tasks if it acquires it.
In his official comments on the robotics business agreement, Masayoshi Son said: "SoftBank's next frontier is physical AI." Son's statement was tied to an announced definitive purchase agreement, as part of the group's push into this field of artificial intelligence applications. The potential acquisition of Allied Universal, meanwhile, remains at the preliminary discussion stage described by Reuters, including talks on price. SoftBank's investor relations calendar lists its next financial disclosure for 10 November 2026, when it will announce results for the second quarter of its fiscal year 2026. The scheduled financial announcement comes as the group considers a potential security deal, following the announcement of its agreement to buy ABB's robotics business.