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SIS and Prosegur create Joint Venture to Provide Cash Management Services in India

New Delhi - SIS Group, the largest Indian owned security services group, and Prosegur, world's second largest security services provider by market capitalisation, have announced a Joint Venture for Cash Management Services in India. Binding agreements were executed on 25th May, 2011. Deal closing is subject to government approvals.

The joint venture company which will be known as "SIS Prosegur" in which SIS would hold 51% stake while the balance 49% would be held by Prosegur. It would initially have a capital outlay of Rs. 150 crore. Both companies have agreed to invest additional equity to the extent of INR 600 Crores to support the organic and inorganic growth of the JV company over time. As per the arrangement, SIS group would demerge its cash management services business in India and make it a part of the Joint Venture Company.

SIS Prosegur, the JV Company will offer a comprehensive range of secured transportation, vaulting, processing and maintenance solutions for ATMS, Bank cash, bullion and other valuables catering primarily to Banks / Financial Institutions & Organised Retail industry. It would also setup state of the art Cash Vaulting & Processing facilities across 12 cities in India over next 18 months. These facilities will be used to store cash & valuables and also process cash for ATM use. The JV Company will introduce global best practices and technology including use of specialised machines for cash counting, counterfeit verification, cash sorting (ATM fit/ not fit current notes) and cash packaging.

Speaking on the occasion, Mr RK Sinha, Chairman and Managing Director, SIS Group said, "We are really pleased to partner with PROSEGUR - the World Leader in Cash Management services. Together we are confident that we will introduce solutions to the banking industry which are at par with global best practices." He added further that with the introduction of ATM cash forecasting and ATM maintenance tools and best practices, SIS Prosegur will be able to reduce idle currency related losses for banking industry.

"The Cash Services segment in India needs consolidation. The industry is far too fragmented and with this joint venture agreement with Prosegur, SIS shall invest resources to create world class cash management infrastructure across India. Aside of this, we are also open for acquisitions" added Mr. Sinha.

"We believe that our JV with SIS has the vision, the commitment, the capabilities and the resources to become the reference player in the market. There is an opportunity in the Indian market to offer a world class product driven by service and innovation" said Mr. Christian Gut, Chairman & CEO, PROSEGUR

SIS Group is the largest Indian owned security services group with sales in excess of INR 1850 crores (31st March, 2011). The Group offers a complete range of security services including Man Guarding, Electronic Security, Cash Management Services, Security Training & Consulting and Mechanised Cleaning.
SIS Group operates across India and Australia with over 52,000 permanent employees and serves over 3000 corporate customers. In 2008, SIS Group became the first Indian Multinational in Security Services space when it acquired Australia's largest security company - Chubb Security. DE Shaw, one of the world's leading, Private Equity fund, is an investor in SIS Group.

Prosegur is a Euro 3 Billion leading Global Security Service provider present in Spain, Argentina, Brazil, Chile, Colombia, France, Italy, Mexico, Paraguay, Peru, Portugal, Romania and Uruguay. Involved in a continuous process of technological innovation for over 30 years, the company offers all the Security services that customers can demand today.

With a workforce of over 100,000 employees and more than 600 offices located throughout the world, a firm commitment to technology and innovation, human capital in perfect harmony with customer proximity and excellence in providing service have enabled the Company to continue to grow day by day.