Loomis' Strategic U.S. Move: A Steady Bet on Cash Logistics in a Digital World

Loomis AB, the Swedish cash logistics giant, has taken a significant step in its push to dominate the U.S. market with the acquisition of Burroughs, Inc., a leading provider of ATM and automated device services, for an initial $72 million (SEK 695 million). The deal, finalized in May 2025, marks a deliberate play to consolidate Loomis’ position in a sector where physical cash remains a critical part of financial infrastructure, even as digital payments surge.

The Acquisition at a Glance

Burroughs, Inc., with its 600 employees and $107 million in annual revenue, specializes in maintaining ATMs, smart safes, and other automated devices through remote monitoring, predictive maintenance, and on-site technical support. . Loomis’ wholly owned subsidiary, Loomis US Holding Inc., acquired 100% of Burroughs’ equity on a cash-and-debt-free basis, with an additional earn-out clause of up to $38 million tied to performance metrics. The acquisition is expected to close in the second quarter of 2025, subject to regulatory approvals.

The strategic rationale is clear: Loomis aims to create a “comprehensive full-service ATM solution” by integrating Burroughs’ technical expertise into its existing cash logistics operations. This synergy positions Loomis not just as a cash transporter but as a provider of end-to-end services for automated financial systems, from deployment to maintenance.

Valuation and Synergy Potential

At first glance, the $72 million purchase price—roughly 67% of Burroughs’ 2024 revenue—appears steep. However, Loomis’ ambition hinges on the projected $450 million in annual cost savings by 2027, which would more than offset the upfront cost. These savings stem from operational efficiencies, such as combining Loomis’ scale with Burroughs’ specialized services, and expanding cross-selling opportunities to shared customers.

The deal’s true value, however, lies in its strategic alignment. By acquiring Burroughs, Loomis reduces its reliance on third-party service providers and strengthens its ability to serve customers in a fragmented U.S. market. This vertical integration could also insulate Loomis from supply chain disruptions and rising labor costs, critical challenges in the cash logistics sector.

will be critical to validating this optimism. If realized, the synergies could lift Loomis’ EBITA and EPS meaningfully, particularly in a sector where margins are thin and competition is fierce.

Risks and Challenges

Despite the upside, risks abound. First, the $450 million synergy target is ambitious and depends on seamless integration of two complex operations. Burroughs’ 600 employees—most of whom are skilled technicians—will need to align with Loomis’ systems and culture without disrupting service quality.

Second, regulatory hurdles could delay the deal. U.S. authorities have grown skeptical of foreign acquisitions in critical infrastructure sectors, and Loomis’ ownership of Burroughs’ sensitive ATM data may attract scrutiny.

Third, the long-term viability of cash-based systems remains uncertain. While cash usage persists in the U.S., digital payment adoption is accelerating. If cash demand declines faster than anticipated, Loomis’ investment could lose relevance.

Lastly, the earn-out clause introduces performance risk. If Burroughs underperforms, Loomis may overpay for a business that fails to meet expectations.

Conclusion: A Calculated Gamble in a Consolidating Industry

Loomis’ acquisition of Burroughs is a bold but logical move in a consolidating sector. The $695 million price tag, while notable, is dwarfed by the potential upside: a $450 million annual cost savings target, access to 600 skilled technicians, and a direct line to $107 million in recurring revenue. These factors suggest the deal could pay off handsomely if executed well.

The integration’s success will hinge on Loomis’ ability to retain Burroughs’ management team and leverage its technical expertise without stifling innovation. Meanwhile, the broader industry context favors consolidation. As banks cut back on ATM maintenance and cash logistics, firms like Loomis are uniquely positioned to absorb niche players and build vertically integrated service networks.

For investors, the key metrics to watch are not just the synergy targets but the tangible signs of integration: , customer retention rates at Burroughs, and the pace of cross-selling. If Loomis can turn this acquisition into a platform for sustained growth, it may well cement its status as the U.S. market leader in both cash logistics and automated financial services—a dual mandate that could prove as resilient as cash itself.