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Vancouver based Telus Corp. is increasing its scope of home and business security operations with the acquisition of ADT Security Services Canada Inc. in a deal worth approximately $ 700 million. The national telecommunications company announced that the acquisition is a part of the company’s efforts to provide monitoring services against threats such as break ins, fires, carbon monoxide leaks, and floods, in addition to providing users with automation features controlled through the internet.
In a press statement Telus said:”Importantly, the ADT Canada acquisition also supports the continued advancement of Telus’s health strategy, including remote patient care.” At present ADT’s Canadian arm has a workforce of around 1000 people, and provides its services to around 500,000 business and residential customers around the country.
This figure is 5 times more than the customer base held by the SmartHome Security and Secure Business project by Telus. In turn, ADT plans to give the money from the deal to its shareholders, while increasing its focus on operations in the United States. According to the details given out by the company, ADT will give out a one-time dividend of approximately $550 million to its shareholders at the conclusion of the deal, which will account for 70 cents per share.
Major Canadian Phone and Cable Companies Look to Home Security and Automation
ADT Inc. has also stated that the third quarter will witness a non-cash charge relevant to the deal, but declined to provide an estimate for the same. Jim DeVries, the CEO and President of the company stated: “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.”
A number of Canada’s phone and cable firms have set their sights on the home security and automation sectors as they seek opportunities for growth with next gen networks and fifth gen wireless services. These businesses include BCE Inc. and Rogers Communications Inc. among others. Aside from the ADT deal, Telus is seeking to build its subscriber base to 100,000 users.