Garda World Security Corp. has struck a 12-year, $1.4-billion (U.S.) deal with Bank of America to manage its cash processing and cheque imaging services in 32 locations across the United States.
Montreal-based Garda said on Wednesday that the transaction includes Garda’s acquisition of the bank’s money rooms and related facilities, which will entail the transfer of about 1,000 BoA vault employees to GardaWorld Cash Services.
The transaction is set to close in the first quarter of 2014.
Garda – which bills itself as the world’s largest privately owned security company in the world – said the deal is part of its expansion in the cash services industry.
“This transaction more than doubles the capacity of GardaWorld’s existing cash processing platform and creates an undisputed market leader in our industry,” GardaWorld Cash Services president and chief operating officer Christopher Jamroz said in a news release.
“The outsourcing trend of these value-added services is already commonplace in most industrialized countries,” said Garda president and chief executive officer Stephan Cretier.
“This transaction demonstrates the options available to U.S. banks in terms of how they think about processing cash.”
Once the deal with BoA closes, Garda will operate 280 secure cash processing centres across the U.S., Garda said.
Garda was founded by Mr. Cretier in 1995.
It was privatized last year.