Tyco to acquire Broadview Security from Brinks for $2 billion

Tyco International today said it is acquiring security systems provider Broadview Security for $2 billion in a cash and stock to strengthen its position in the residential and commercial security sector in North America.

The proposed acquisition will be Tyco's first since the company broke up its conglomerate structure in 2007 by separating into three publicly independent companies, Covidien Ltd, formerly Tyco Healthcare, Tyco Electronics and Tyco International, formerly Tyco Fire & Security and Tyco Engineered Products & Services, respectively

Irving, Texas-based Broadview Security, which was spun off as a separate publicly traded entity from Brink's Home Security Holdings last year, operates in more than 250 metropolitan areas and has more than 1.3 million customers across the US and Canada.

The cash and stock transaction, which has been approved by the board of both companies values Broadview at $42.50 a share, a 35-per cent premium to its closing price on Friday of $31.42.

Under the terms of the deal, Broadview's shareholders can opt to receive either cash or a combination of stock and cash.

Tyco, which is incorporated in Switzerland but has its operational headquarters in Princeton, New Jersey, said that it intends to merge Broadview with its subsidiary ADT Security Services and the merger is expected to result in operating synergies of about $150 million.