Report: Japan's SoftBank Group is considering acquiring Allied, America's largest security company

Masayoshi Son bets on the deployment of AI robots, with the security industry becoming a key testing ground.

On October 16, according to Bloomberg citing insiders, SoftBank Group is conducting preliminary research into acquiring Allied Universal, the largest security services company in the United States.

The report states that this potential deal could value Allied Universal’s equity as high as $18 billion. In addition, the company carries about $12 billion in publicly traded debt, and when combining both loans and bonds, the total transaction value could approach $30 billion.

The negotiations are still in early stages, and key terms, including the final price, remain undetermined. After the news broke, SoftBank ADRs plunged nearly 10% in a single day to $14.72 per share.

Allied Universal is the largest security services company in the US, with business covering on-site corporate security, large event safety management, and data center protection, while also providing value-added services such as intelligence analysts, K9 units, explosives technicians, as well as facility management services like cleaning and maintenance. The company is also contracted to secure the New York City subway for the Metropolitan Transportation Authority (MTA).

According to sources cited by the report, Masayoshi Son has positioned security services as a key testing field for the robot technologies developed by his investment portfolio companies. For one-time events such as concerts, deploying fleets of robots to replace human security staff is economically viable.

However, the report also admits that practical applications for humanoid security robots will still require a significant amount of time, as the necessary technology is not yet mature—“conceptually akin to a 'robot cop', but the technology isn’t there yet.”

Allied Universal itself is also exploring the use of robots, including developing an autonomous patrolling and monitoring machine about 1.5 meters tall and weighing approximately 136 kilograms. The company states on its official website:

While professional security personnel are irreplaceable for strategic decision-making, situational analysis, and response, machines have advantages in repetitive, computation-intensive, and dangerous or hard-to-access tasks.

This potential acquisition follows a series of recent intensive moves by Masayoshi Son in AI and robotics.

SoftBank has established an AI and robotics operating entity called Roze and plans to push for its listing in the United States. According to previous Bloomberg reports, Masayoshi Son has also pledged a $65 billion investment in OpenAI—one of his major bets on the AI wave.

In the field of robotics hardware, SoftBank has spent $5.4 billion to acquire the industrial robot division of Swiss industrial giant ABB, invested $200 million in Swiss construction automation software startup Gravis Robotics, and has been negotiating to increase its stake in German startup Agile Robots through new fundraising rounds.

Last year, Masayoshi Son established a new holding company, Robo HD, to consolidate his robotics assets, merging about 20 investments—including Berkshire Grey, Agile Robots, and Skild AI—into this entity, marking a new stage in his systematic approach to the robotics sector.

Masayoshi Son’s bets on the robotics industry go back many years, with mixed results: SoftBank launched the humanoid robot Pepper in 2014 but ceased production in 2020; after acquiring Boston Dynamics in 2017, most shares were later sold to Hyundai Motor Group.

Allied Universal’s current shareholders include private equity firm Warburg Pincus and Canada's pension fund La Caisse (formerly CDPQ). According to Bloomberg data, the company’s approximately $12 billion in public market debt includes both loans and bonds.

The last public valuation of the company was in 2019, when La Caisse acquired a stake, valuing it at over $7 billion. If the current deal is concluded at an $18 billion equity valuation, it would mean more than doubling its value in less than six years.

SoftBank’s recent acquisition spree has made it one of the most active strategic investors globally. Beyond robotics, the group also acquired American digital infrastructure asset manager DigitalBridge Group for $3 billion to advance Masayoshi Son’s ambitions in the data center business.