Tyco Shareholders Officially OK ADT Spinoff
BOCA RATON, Fla. — Tyco Int’l shareholders this week approved the spinoffs of the firm into three pieces — ADT home security operations, a remaining commercial fire and security business and its flow control business.
After the separation from Tyco, which takes effect Sept. 28, ADT will be the largest player in a fragmented $12.5 billion market, according to Reuters. With more than six million customers in the United States and Canada, ADT has annual sales of about $3 billion. Company executives maintain that the business will be the only publicly listed U.S. company focused on security monitoring with a growing business in home automation systems.
ADT will officially begin operating as an independent company on Oct. 1, the same day that it will begin trading on the New York Stock Exchange under the symbol ADT, reports KnoxvilleBiz.com. There has been speculation by investors and analysts that after the breakup, a cable or telecommunications company looking to expand its offerings could acquire the soon-to-be independent ADT. However, ADT officials maintain the company will remain on its own, and possibly become an acquirer, Reuters reports.
“I’m spending 100% of my time building the strategy, building the team [for] a standalone company,” ADT CEO Naren Gursaheney told the news service. “We do intend to go it alone. We’re going to be a standalone public company. There could be acquisition opportunity because it’s a very fragmented market.”
The latest deal is good news for the labor market in Tennessee. ADT plans to add hundreds of jobs to its Knoxville, Tenn.-based monitoring center and sales office, KnoxvilleBiz.com reports. Roughly 350 employees currently work at the call center and sales office.
Meanwhile, the new Tyco Fire & Security will sell commercial fire and security products, with Tyco Integrated Security, formerly ADT Commercial, operating as a division of the operation. In March, Tyco struck a multibillion-dollar deal to merge its flow control operations with those of Pentair Inc.
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