Tyco International has closed on the acquisition of Broadview Security and will merge Broadview with its ADT Security operations.
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On Wednesday, Brink's Home Security (a.k.a. Broadview Security) shareholders approved the transaction through which Tyco International would purchase their shares and combine Broadview Security with ADT Security. Today, May 14, 2010, Tyco formally announced the completion of the acquisition of Broadview. The move will merge the two largest security alarm companies in the United States; ADT is also the world's largest electronic security provider.
Tyco Chairman and CEO Ed Breen said the move "creates an opportunity for ADT to strengthen its leadership position in the security industry, while enhancing Tyco's strategic focus on its core security, fire and flow control platforms."
The acquisition brings 1.3 million customers to Tyco/ADT, giving the post-merger ADT over six million customers in North America.
A statement from Tyco indicated the following prices for the transaction:
"Under the terms of the transaction, each outstanding share of Brink's Home Security common stock will be converted into the right to receive: (1) $13.15 in cash and 0.7562 Tyco shares, for those shareholders who made an all-cash election, (2) 1.0951 Tyco shares, for those shareholders who made an all stock election and (3) $12.75 in cash and 0.7666 Tyco shares, for those shareholders who made a mixed cash/stock election or who failed to make an election by the election deadline."
The total transaction is worth approximately $2 billion.