TELUS (TSX: T, NYSE: TU) has agreed to acquire ADT Security Services Canada, Inc. (ADT Canada) from ADT Inc. (NYSE: ADT) for approximately CDN $700 million.
ADT Canada is one of Canada’s leading providers of security and automation solutions serving residential and business customers, with approximately 500,000 customers and approximately 1,000 team members across the country.
For the fiscal year ended December 31, 2018, ADT Canada reported revenue of US $229 million.
The transaction is expected to close in Q4 2019.
TELUS said the ADT Canada acquisition not only expands its security business, but also supports the continued advancement of TELUS’ health strategy. This includes enabling Canadians with remote patient care with home health monitoring; and helping Canadians, notably elderly citizens, enjoy their independence with secure, connected technology in the comfort of their own home.
TELUS entered in the home security business in January 2018 with the acquisition of 39,000 customer accounts in British Columbia, Alberta and Saskatchewan, part of $182 million acquisition of AlarmForce Industries Inc. (formerly TSX: AF) by BCE Inc. (TSX/NYSE: BCE) (NYSE: BCE). TELUS paid approximately $66.5 million for the accounts.
Stikeman Elliott LLP acts as legal advisor to TELUS.
RBC Capital Markets and Barclays are serving as financial advisors to ADT and Osler, Hoskin & Harcourt, LLP is serving as legal advisor.
photo credit: ADT Canada
TELUS announces agreement to acquire Canadian operations of ADT
October 01, 2019 08:00 ET | Source: TELUS Communications Inc
VANCOUVER, British Columbia, Oct. 01, 2019 (GLOBE NEWSWIRE) — Today, TELUS announced that it has agreed to acquire ADT Security Services Canada, Inc. (ADT Canada) for approximately CAD $700 million. ADT Canada is one of Canada’s leading providers of security and automation solutions serving residential and business customers, with approximately 500,000 customers and approximately 1,000 team members across the country.
This acquisition furthers TELUS’ commitment to leverage the power of technology to bring state-of-the-art convenience, control and safety into the lives, homes and businesses of more Canadians. TELUS is also proud to deepen ADT Canada’s roots by ensuring its services continue to be provided and supported by a Canadian company that also prioritizes privacy and security. Following closing of the transaction, TELUS looks forward to welcoming ADT Canada team members and customers into the TELUS family, and bringing customers best-in-class customer service, and innovative new features in the immediate future with valuable offers and upgrades.
This acquisition builds on TELUS’ strategy and commitment to leverage its world-leading wireless and PureFibre networks and complements our industry-leading customer service, to continue to enhance connected home, business, security, IOT, cybersecurity, smart buildings, smart cities and health services for its customers in Canada. The TELUS PureFibre network serves as the backbone of TELUS’ wireless network, enabling even more wireless capacity and faster speeds. TELUS has been repeatedly recognized globally as the fastest network with the best coverage and customer experience in Canada with independent awards and rankings from J.D. Power, H2 OpenSignal, PC Mag, and Ookla.
Recognizing that home and business security is of significant importance to its customers, last year the company launched TELUS SmartHome Security and Secure Business. These solutions provide customers with peace of mind and convenience through advanced home and business automation, state-of-the-art security features, 24/7 real-time monitoring for fires, floods, carbon monoxide leaks and break-ins, and many connected features that allow customers to easily manage their home or business directly from the TELUS SmartHome Security app on TELUS’ award-winning wireless network. This app enables customers to remotely check cameras, lock and unlock doors, manage indoor and outdoor lighting, and even the thermostat all from their smartphone. Importantly, the ADT Canada acquisition not only expands TELUS’ security business, but also supports the continued advancement of TELUS’ health strategy. This includes enabling Canadians with remote patient care with home health monitoring; and helping Canadians, notably elderly citizens, enjoy their independence with secure, connected technology in the comfort of their own home.
In the third quarter of 2019, TELUS expects to have added more than 12,000 new customer additions to our security business, bringing our total security subscriber base to approximately 100,000 prior to the acquisition of ADT Canada. These subscriber statistics are preliminary and subject to confirmation with the release of our third quarter results on November 7, 2019.
The transaction is expected to close in the fourth quarter of 2019, pending regulatory approval and satisfaction of other customary closing conditions set forth in the share purchase agreement, a copy of which will be made available by ADT on EDGAR, the Electronic Data Gathering, Analysis, and Retrieval System of the U.S. Securities and Exchange Commission, at www.sec.gov.
For more information about TELUS’ security and automation solutions, please visit telus.com.
Source: Private Capital Journal