Tyco Intl. Ltd., a diversified manufacturing and service company, announces that it has entered into a definitive agreement to acquire Simplex Time Recorder Co., a privately held company headquartered in Westminster, Mass., for $1.15 billion in cash. Simplex manufactures fire and security products and communications systems, including control panels, detection devices and system software. Simplex, which is expected to report fiscal 2000 revenues of approximately $870 million, also installs, monitors and services fire alarms, security systems and access control systems.
“This transaction meets all of Tyco’s acquisition criteria. The transaction will be immediately accretive to Tyco’s earnings per share (EPS) and generate positive operating cash flows. In addition, Simplex is a leader in the markets it serves, provides a strong recurring revenue stream and is an excellent complement to Tyco’s existing Fire and Security Services product offering, capabilities and geographic reach,” says L. Dennis Kozlowski, Tyco chairman and CEO.