"With its patented technology and strong growth, margins and cash flow conversion, RCS benchmarks favourably with financial technology and software services businesses," G4S said in a statement.

"We believe that RCS provides G4S shareholders with material value upside," it added.

UK-listed G4S, one of the world's largest private-security firms employing more than half a million people, is caught in a bidding war between Canada's GardaWorld and U.S. rival Allied Universal Security Services.

Earlier this month, GardaWorld said it has extended its 190 pence per share offer to leave it open for acceptances until Nov. 28. G4S shares were trading up 2% at 218p at 1620 GMT on Monday.

G4S said it expects revenue in excess of $600 million from RCS by 2025 -- more than triple the $170 million it reported last year, which was a 30% jump compared to the preceding year.

While the segment only accounted for 2.2% of total revenue, its growth was six times greater than the overall group.

After a 2015 launch, RCS has grown into a business that manages more than $2 billion of cash on behalf of customers across 10,000 installed locations in North America.

G4S said RCS has an asset-light business model, with cash handling devices typically purchased and owned by retailers and managed by RCS.

(Reporting by Muvija M and Aakash Jagadeesh Babu in Bengaluru; Editing by Keith Weir)