VANCOUVER – Telus announced today it will purchase ADT Security Services Canada for approximately $700 million.
ADT Canada is a leading provider of security and automation solutions, serving residential and business customers. It has approximately 500,000 customers and 1,000 employees across the country, according to the Telus press release. Last fiscal year, ended December 31st, ADT’s Canadian operations generated US$229 million in revenue, said the release from the Boca Raton, Fla.-based company.
While the company had already launched a security solution via its SmartHome Security app, this acquisition brings Telus more in line with other Canadian network operators such as Rogers (which has offered home security for a long time), Bell (which purchased AlarmForce in 2018) and other carriers which already offer home and business security solutions.
Carriers see security, where they provide real-time monitoring for fires, floods, carbon monoxide leaks, break-ins and other problems as a key component to providing complete smart home solutions for their customers.
“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,” reads the press release. (Watch for things like Telus combining ADT tech with its health care tech to remind customers to take their meds.)
ADT employees will be brought on board as Telus team members when the transaction closes, which is expected sometime during the fourth quarter of this year.
In the third quarter of 2019, Telus expects to have added more than 12,000 new customer additions to its security business, bringing the company’s total security subscriber base to approximately 100,000 prior to the acquisition of ADT Canada, said the company.
As for ADT, it has authorized a special one-time dividend of $0.70/share where the Telus purchase price will be doled out to shareholders.
“The sale of our more capital intensive Canadian operations enables us to sharpen our focus on the exciting growth and higher margin opportunities in the U.S., where we can more efficiently invest our time and resources,” said ADT president and CEO Jim DeVries in his company’s release.
