Tyco Int’l and Sensormatic Electronics Corp. have entered into a definitive agreement under which a Tyco subsidiary will purchase Sensormatic in a stock-for-stock transaction. The deal is valued at approximately $2.3 billion including the assumption of $116 million of net debt. Sensormatic shareholders receive Tyco shares valued at approximately $24 per Sensormatic share. Sensormatic had revenues of $1 billion for fiscal year 2001.
“Sensormatic provides an excellent strategic fit with Tyco Fire and Security by broadening and enhancing our product line,” says L. Dennis Kozlowski, Tyco’s chairman and CEO. “The combination of our existing fire and security monitoring and service operations with SRM’s leading manufacturing capabilities in electronic article surveillance (EAS), video and access control allows us to provide a more complete security system solution to our customers worldwide.” He adds “Furthermore, Tyco Fire and Security will leverage its retail customer base and global commercial sales force to enhance sales of Sensormatic’s advanced loss prevention technologies. Like our other acqusitions, Sensormatic will generate long-term, sustainable revenue growth and operating efficiencies and add to our increasing base of service revenue.”
Per-Olof Loof, president and CEO of Sensormatic adds that “Sensormatic’s management and board of directors are excited by the new growth opportunities of our product lines through Tyco Fire and Security’s sales and distribution infrastructure. It’s a win for our customers, who will have access to Tyco’s more comprehensive range of product offerings and services. And, it’s a win for our employees, who will now be part of the world’s leading manufacturer, installer and provider of fire protection systems and electronic security services.”
