Tyco International Ltd., a Bermuda-based diversified company that provides security products and services, announced that it has reached an agreement with Oceania Capital Partners Limited of Sydney, Australia to acquire OCP's Signature Security Group for AUD $171 million. Tyco intends to combine Signature Security's Australian and New Zealand operations with its ADT Security business under the ADT name.
Signature Security is a provider of electronic security services in Australia and New Zealand, providing security installation and monitoring services to more than 90,000 premises with annualized revenue of approximately AUD $80 million. ADT, part of Tyco's security solutions business has approximately nine million customers around the world and 2010 revenue of $7.7 billion.
“This acquisition provides us with the opportunity to strengthen ADT's business in the Australian and New Zealand security markets while advancing our strategy for growth in the global security industry,” said Ed Breen, Tyco chairman and chief executive officer. “Signature Security is an excellent strategic fit with our ADT business, providing us with increased scale and attractive operating synergies.”
According to Robert Zhu, president, ADT Asia-Pacific, both ADT and Signature are well managed businesses with strong operating platforms and a shared focus on providing outstanding customer service.
“Adding Signature Security to our portfolio means that we will be an even stronger partner for our customers as we leverage its experienced team of employees and geographic footprint. This will enable us to broaden our sales, installation and service capabilities in the Australia and New Zealand markets.”
The transaction is expected to close during the third quarter of Tyco's fiscal year, which quarter begins on April 1, 2011. The transaction is subject to customary closing conditions.