SoftBank Weighs $30 Billion Bid for Allied Universal

Japanese technology conglomerate SoftBank Group is in early stage talks to purchase Allied Universal, the Irvine-based security giant. The proposed transaction values the company at approximately $30 billion, comprising $18 billion in equity and $12 billion in debt. If finalized, the deal would stand as the third-largest acquisition of an Orange County based firm. It would trail only the nearly $70 billion sale of Allergan in 2015 and the $37 billion sale of Broadcom in 2016.

SoftBank has maintained a long history of investment in local companies, primarily within the technology sector. A decade ago, the firm partnered with Newport Beach telecom company Mobilitie, now Boldyn Networks, to deploy tens of thousands of cell phone towers across the United States. This expansion was tied to SoftBank’s investment in Sprint Corp. Gary Jabara, the former head of Mobilitie, noted in a recent LinkedIn post that the Japanese group often anticipates market shifts well before competitors.

Not every local investment has yielded positive returns for SoftBank. In 1996, founders John Tu and David Sun sold 80% of Kingston Technology to SoftBank for $1.5 billion. The pair repurchased the Fountain Valley based computer memory maker in 1999 for $450 million. Their current wealth is valued near $30 billion, while Kingston’s annual revenue approaches $18 billion. This places Kingston as the second highest revenue generator among privately held Orange County firms, behind Allied Universal’s $22.6 billion in revenue last year.

Reuters reported last week that SoftBank’s interest in Allied Universal stems from Chairman and CEO Masayoshi Son’s focus on artificial intelligence and robotics. The report suggests SoftBank intends to replace some Allied staff with robots for various security tasks in coming years. Allied CEO Steve Jones has recently emphasized technological advances, including robotics, in the company’s operations. Earlier this year, Jones was introduced to Ali Agha, CEO of Irvine robotics firm FieldAI, by Business Journal Publisher Richard Reisman. FieldAI is valued at $10 billion.

Steve Jones has built Allied Universal into one of the world’s largest security companies through an aggressive acquisition strategy over the past decade. The firm currently employs nearly 800,000 people worldwide. In the local community, Jones and his wife Stacy have established the Hot Summer Nights fundraiser to benefit Vera’s Sanctuary in Trabuco Canyon, which serves human trafficking victims. The family covers 100% of the event costs, including musical performances. This year, the event attracted more than 700 guests and raised a record $3.2 million. Since its inception, the initiative has raised nearly $15 million for the nonprofit.

In related corporate news, Switzerland’s Alcon Inc. recently adjusted its acquisition strategy in the ophthalmology sector. Last year, Alcon attempted to buy Lake Forest based Staar Surgical for $1.6 billion, but shareholders rejected the bid at the start of 2026, citing undervaluation. Staar now carries a $1.1 billion valuation, with shares down 19% over the past year. Last week, Alcon purchased Rhode Island biotech firm Neurotech Pharmaceuticals for $550 million. Neurotech’s executive chairman is Jim Mazzo, a former head of Advanced Medical Optics and a prominent figure in the local ophthalmic industry.