Broadview to become part of ADT

Tyco International Ltd has announced a definitive agreement to acquire Brink's Home Security Holdings, now operating as Broadview Security.

Following the closing of the transaction, Tyco intends to combine Broadview with Tyco's ADT security business, under the ADT name.

The cash and stock transaction is valued at US$42.50 per share or approximately US$2.0 billion.

"This transaction provides us the opportunity to further strengthen our position in the residential and commercial security industry, while advancing Tyco's overall strategy to increase its presence in its core security, fire and flow control platforms," Tyco Chairman and Chief Executive Officer Ed Breen said.

Bob Allen, President and Chief Executive Officer of Broadview said: "We are proud of all we have achieved as a company to increase our customer base, and to grow our revenue and income in a challenging economy.

"We view this transaction as the culmination of these efforts, providing our shareholders with an attractive premium for their shares, including cash consideration and an opportunity to participate in the future growth of Tyco International."

Naren Gursahaney, President of ADT Worldwide, said ADT and Broadview were an excellent strategic fit.

"We have highly complementary product and service offerings, strong sales and marketing organisations and a shared dedication to quality customer service," he said.

"We expect this combination to result in an even more efficient, more successful ADT."