MONTREAL and TORONTO – BCE Inc. announced late Monday it will acquire Canadian security company AlarmForce Industries in a transaction valued at approximately $166 million.
The move will bring Bell alongside Rogers in Ontario as a five-product company (broadband, home phone, TV, wireless and home security). Rogers has offered a home security service for a number of years and the service has morphed into more of a connected-home offering for its customers. Bell already has security/smart home divisions in the east and in Manitoba, which it acquired with MTS.
"Bell is excited to welcome the AlarmForce team as we pursue the significant growth and innovation opportunities represented by the connected home. It's a natural next step for Bell as one of Canada's most trusted brands in residential services," said George Cope, president and CEO of BCE in a press release.
“Leveraging Bell's network and service leadership and our place in millions of Canadian homes, we look forward to growing our nascent position in security and automation services to ensure Bell residential customers are at the leading edge of connected home innovation."
AlarmForce is one of the largest home and business security companies in Canada with more than 100,000 subscribers, says the Bell release, and offers solutions such as intrusion alarms and smoke, flood and carbon monoxide detection; automation services including lighting, climate and lock control systems; and in-home and mobile medical alert systems.
The AlarmForce acquisition will be completed through a plan of arrangement under which Bell will acquire all the issued and outstanding common shares of AlarmForce for $16 per share in an all-cash offer, for a total transaction equity value of $184 million. AlarmForce shareholders may elect to receive BCE common shares in lieu of cash, subject to proration, capped at 49.5% of the total equity value. Subject to customary closing conditions, the transaction is expected to close in January 2018.
