Nokas Vaärdehantering and Loomis Sverige are both payment institutions operating under the supervision of the Swedish Financial Supervisory Authority (SFSA). The transaction is subject to Nokas Vaärdehantering, has approximately 220 employees and the annual net revenue for the last twelve months ending in September 2019 was approximately SEK 215 million (€20 million).
“The acquisition of Nokas’ Swedish cash handling will add opportunities to further develop our service offerings in the Swedish market. We are convinced we can add value for our new customers, but also for our current customers in Sweden” said Patrik Andersson, president and CEO of Loomis.
Including integration costs, the acquisition is expected to have a marginal dilutive effect on earnings per share of Loomis in 2020. Thereafter the acquired business is expected to generate profits. Nokas CMS AB, which deploys ATMs in Sweden, is not part of the acquisition and will remain part of the Nokas Group.
Sweden has seen a continued decline in the value of cash in circulation between 2007 and 2018. But since early 2018, it is on the rise again.
In September 2019, the Swedish government put forward a legislative proposal requiring that large credit institutions provide cash services to the public. The purpose of the law is to ensure an adequate level of access to cash throughout Sweden in a context of ATM closures and branches which no longer enable cash deposits or withdrawals.