Loomis to acquire Burroughs in $72m U.S. ATM services deal

Loomis AB, the Sweden-headquartered cash handling and secure logistics company, has signed a definitive agreement to acquire 100 percent of Burroughs, Inc., a leading U.S.-based service provider for ATM and unattended payment technologies. The deal, valued at USD 72 million on a cash- and debt-free basis, also includes a performance-linked earn-out of up to USD 38 million.

The transaction, to be executed via Loomis US Holding Inc., marks a significant strategic move as the company pivots deeper into high-growth service areas adjacent to its traditional cash management business. The deal is expected to close in Q2 2025, pending customary regulatory approvals and closing conditions.

Burroughs will be integrated into Loomis’ Segment USA division, with the management team remaining in place to ensure operational continuity. Loomis has indicated that the acquisition will be accretive to operating profit (EBITA1) and earnings per share over time.

What Does Burroughs Bring to Loomis?

Founded over a century ago and restructured as a modern fintech field services provider, Burroughs delivers full lifecycle management services for a broad portfolio of devices including ATMs, kiosks, smart safes, and self-service payment systems. In 2024, Burroughs reported revenue of USD 107 million, primarily from first- and second-line maintenance, predictive maintenance, digital remote monitoring, and payment device integration.

Burroughs operates as an OEM-agnostic service provider, allowing it to support multi-vendor environments — a key requirement in today’s diverse financial hardware ecosystems. With approximately 600 employees, including a large technician workforce deployed across the United States and Canada, Burroughs has positioned itself as one of North America’s most adaptable service networks for banking and retail technology infrastructure.

How Does This Fit Into Loomis’ Strategic Shift?

Loomis AB, historically known for its cash-in-transit and vault services, has been undergoing a transformation to future-proof its business model. With cash usage in structural decline across developed markets, the company has moved aggressively into technology-driven services such as SafePoint cash automation, full-service ATM management, and retail cash logistics.

This latest acquisition follows Loomis’ multi-year strategy of expanding into “adjacent services” that generate higher margins and recurring revenue. The focus has been on leveraging its logistics expertise and customer network to offer more integrated solutions, especially in North America where banking and retail institutions are rapidly upgrading to self-service infrastructure.

This is not Loomis’ first U.S. acquisition aimed at automation — previous moves include expanding SafePoint installations and entering full lifecycle ATM servicing. The acquisition of Burroughs represents its largest investment to date in back-end service technology.

What Is the Financial Profile of the Deal?

The USD 72 million initial consideration represents a 6.5x EV/EBITDA multiple based on Burroughs’ adjusted FY2024 financials. Loomis will fund the transaction through existing credit facilities and available cash, with no anticipated material impact on leverage ratios. The potential USD 38 million earn-out is tied to undisclosed performance thresholds, likely related to EBITDA contribution or customer retention.

The acquisition will be reported under Loomis’ Segment USA from the closing date, consolidating Burroughs’ revenue and operating income into Group financials. Loomis has stated the deal is earnings-accretive over time — indicating margin synergies and revenue scale from integration are expected to be realised within the first full fiscal year post-acquisition.

How Did the Market React to Loomis’ Acquisition of Burroughs?

As of market close on 2 May 2025, Loomis AB’s shares (LOOMIS.ST) were trading at SEK 400.40, registering a slight 0.89% decline for the day. Despite the neutral reaction, the stock has rallied over 36% in the past 12 months, fuelled by consistent earnings delivery and optimism around its tech-enabled services push.

The company currently has a market capitalization of approximately SEK 27.4 billion, with a trailing P/E ratio of 17.07. Analysts maintain a “Hold” consensus on the stock, with a median target price of SEK 410 — just above current levels — reflecting near-term integration risks but long-term strategic value.

What Are Institutional Investors Signalling?

Institutional ownership in Loomis remains high, with 65.8% of shares held by professional investors. Key shareholders include Global Alpha Capital Management and Polaris Capital Management, each holding approximately 5% of the company. This concentrated institutional base is typically supportive of transformation-oriented capital deployment, especially when backed by clear synergies and margin expansion logic.

The decision to fund the acquisition through internal reserves rather than equity issuance has also been well received. It reflects Loomis’ disciplined capital structure and confidence in free cash flow sustainability, supported by resilient performance in both European and U.S. operations.

What Does Loomis’ Dividend Policy Indicate About Shareholder Returns?

At its Annual General Meeting on 6 May 2025, Loomis shareholders approved a dividend of SEK 14 per share, with the record date set for 8 May and payment on 13 May. This payout continues Loomis’ track record of shareholder alignment, even as it pursues inorganic expansion.

Maintaining the dividend during an acquisition cycle is an indicator of underlying cash flow strength. It signals that the company expects the acquisition to enhance—not dilute—its long-term profitability and cash generation ability.

What Do Analysts and Investors Expect Going Forward?

Market analysts view the Burroughs acquisition as a strategically sound move that adds scale, technical capability, and geographic reach. Burroughs’ OEM-agnostic platform, predictive servicing model, and blue-chip client base provide Loomis with levers to drive cross-sell opportunities and reduce supply chain friction across North America.

The outlook from industry experts suggests Loomis may pursue additional bolt-on acquisitions to consolidate the fragmented U.S. ATM services market. Analysts also expect Loomis to integrate Burroughs’ predictive maintenance tools into broader SmartSafe and SafePoint offerings, creating bundled managed services that improve customer retention and pricing power.

Given the industry shift toward automation and AI-enabled diagnostics in ATM and self-service banking infrastructure, Loomis is positioning itself to be a full-spectrum managed service provider, not merely a logistics firm.

Is Loomis a Buy, Hold, or Sell Post-Acquisition?

With consistent earnings performance, a strong dividend policy, and growing exposure to recurring, tech-enabled revenues, Loomis remains a compelling long-term hold. The integration of Burroughs is expected to be earnings-accretive, and although short-term synergies may take time to materialise, the strategic rationale is aligned with broader fintech infrastructure trends.

Investors inclined toward dividend yield and defensiveness in the logistics-tech convergence space may see Loomis as an attractive compounder. Meanwhile, institutions will be watching closely for post-acquisition execution, particularly around cost savings, client retention, and integration milestones.