More on Tyco & Broadview deal

NEW YORK (Reuters) - Security products maker Tyco International will acquire Broadview Security for $1.9 billion in a deal that brings together two big North American names in residential and commercial security, the two companies said on Monday.

The cash-and-stock deal values Broadview at $42.50 a share, a 35 percent premium to its Friday closing price of $31.36. Irving, Texas-based Brink's Home Security Holdings Inc operates as Broadview Security.

Tyco plans to combine Broadview with its ADT security business. The company expects the deal to add to earnings before special items by about 7 cents in the first full year after closing.

The deal has been approved by the boards of both companies.

Under the terms, Brink's shareholders may elect to receive either cash or a combination of stock and cash, subject to various criteria.

Citi acted as financial adviser to Tyco, and Morgan Stanley advised Brink's Home Security.

Tyco also said it expects to earn between 63 cents and 65 cents per share from continuing operations, excluding special items, for the fiscal first quarter of 2010. Previously, it had said it expects to earn between 48 cents and 50 cents per share.

Tyco said the preliminary results included revenue of $4.25 billion for the quarter, exceeding previous guidance of $4.1 billion.

(Reporting by Anupreeta Das; Editing by Martin Golan)

Reply to
Russell Brill
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Figured this was going to happen sooner or later. sounds like the old Security Link deal years ago and customer gets screwed as usual. All the security magazines make such a big deal out of all these mergers as one fsh swallows another and what good has any of this done for the security industry not a dam thing.

Reply to
nick markowitz

I'd like to see SDM hire a proof reader with some knowledge of grammar. Most of the articles could have been written by a fifth grader.

It gives us something to yack about on a slow Tuesday afternoon. :^)

Reply to
Robert L Bass Forums website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.