SoftBank Eyes $30B Bid for Allied Universal

Japanese technology conglomerate SoftBank Group is in preliminary negotiations to purchase Irvine-based security firm Allied Universal. The proposed transaction values the company at approximately $30 billion, split between $18 billion in equity and $12 billion in debt.

If completed, the deal would stand as the third largest acquisition of an Orange County-based company. It would follow only the 2015 sale of Allergan for nearly $70 billion and the 2016 acquisition of Broadcom for $37 billion. SoftBank, which manages one of the world's largest investment funds, has previously invested in local firms, though rarely at this financial scale.

SoftBank's historical ties to the region are rooted in technology and telecommunications. About a decade ago, the firm partnered with Gary Jabara's Newport Beach telecom company, now known as Boldyn Networks, to deploy tens of thousands of cell phone towers across the United States. This effort was tied to SoftBank's investment in Sprint Corp. and preparations for 5G network expansion. "SoftBank is always 10 steps ahead," Jabara stated in a LinkedIn post last year.

Not all of SoftBank's local investments have yielded long-term gains for the founders. In 1996, Kingston Technology co-founders John Tu and David Sun sold 80% of their Fountain Valley computer memory firm to SoftBank for $1.5 billion. By 1999, they had bought back the majority stake for $450 million. Tu and Sun's personal wealth is now valued close to $30 billion, and Kingston's annual revenue approaches $18 billion, placing it second only to Allied Universal's $22.6 billion in revenue last year.

Reports indicate SoftBank's interest in Allied Universal stems from Chairman and CEO Masayoshi Son's focus on artificial intelligence and robotics. Reuters reported last week that SoftBank plans to replace some Allied staff with robots for security tasks in coming years. Allied CEO Steve Jones has highlighted robotics and technological advances for company operations in recent years. Earlier this year, Jones was introduced to Ali Agha, CEO of Irvine robotics startup FieldAI, by Business Journal Publisher Richard Reisman.

Jones has built Allied Universal into one of the world's largest companies through an aggressive acquisition strategy, employing nearly 800,000 people globally. Locally, Jones and his wife Stacy have raised funds for Vera's Sanctuary, a Trabuco Canyon nonprofit serving human trafficking victims, through their annual Hot Summer Nights event. The Jones family covers all event costs, including music. This year's gathering of more than 700 guests raised a record $3.2 million, bringing the total for the nonprofit to nearly $15 million over the past decade.

In related Orange County business news, Switzerland's Alcon Inc. recently adjusted its local acquisition strategy after shareholders rejected its $1.6 billion bid for Lake Forest's Staar Surgical at the start of 2026. Staar, now valued at $1.1 billion, saw its shares drop 19% over the past year. Alcon subsequently purchased Rhode Island's Neurotech Pharmaceuticals for $550 million last week. Neurotech's executive chairman is Jim Mazzo, a former head of Advanced Medical Optics.