Smart Home and alarm monitoring provider ADT Inc. have entered into a definitive agreement that ADT will sell ADT Security Services Canada, Inc. to TELUS Corporation for approximately CA$700 million in cash.
TELUS is a Canadian telco that last year launched a smart home security business. ADT Canada provided security and automation solutions to a customer base of 500,000 and reported revenue of $CAD229 million in 2018.
The transaction comprises all of ADT Canada’s operations and assets, and is expected to close in the fourth quarter of 2019, contingent on customary closing conditions and other business requirements, including approval of the transaction by the Canadian Competition Bureau.
“Opportunities continue to develop for ADT in the areas of smart home integration, the expansion of the home security business into new demographics and ADT’s growth in commercial security,” Jim DeVries, president and CEO, ADT, said in the announcement.
“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. Importantly, these emerging opportunities are ideal for leveraging the trusted ADT brand as we continue generating strong free cash flow to drive shareholder value over the long term.”
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