A Telus sign is pictured at company’s annual meeting in Vancouver on May 8, 2014. Telus Corp. has signed a deal to buy ADT Security Services Canada Inc. for roughly $700 million. THE CANADIAN PRESS/Darryl Dyck

Telus to buy ADT’s Canadian security business, ADT Inc. to pay special dividend

ADT Canada employs about 1,000 and has approximately 500,000 residential and business customers

Telus Corp. is dramatically increasing the size of its home and business security operations with a deal to buy ADT Security Services Canada Inc. for roughly $700 million.

The Vancouver-based company said Tuesday the purchase is part of its move to provide monitoring for fires, floods, carbon monoxide leaks and break-ins as well as internet-controlled automation features.

“Importantly, the ADT Canada acquisition … also supports the continued advancement of Telus’s health strategy,” including remote patient care, Telus said in a statement.

ADT Canada employs about 1,000 and has approximately 500,000 residential and business customers — about five times the number at Telus SmartHome Security and Secure Business, which was launched last year.

ADT Inc. said Tuesday it will pay a one-time special dividend of up to US$550 million, or 70 cents per share, for its shareholders when the deal closes.

“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,” ADT Inc. president and CEO Jim DeVries said in a statement from Boca Raton, Fla.

ALSO READ: Bell joins Rogers with ‘unlimited’ data plans, but not Telus

ADT Inc. also said there will be a non-cash charge in the third quarter in connection with the transaction, but didn’t provide an estimate.

Several of Canada’s major phone and cable companies have identified home security and home automation services as growth opportunities for their latest generation of networks, including fifth-generation wireless service.

Bell Canada parent BCE Inc. bought AlarmForce Industries for about $182 million in a deal that closed in early 2018 and then later sold 30,000 AlarmForce customer accounts in British Columbia, Alberta and Saskatchewan to Telus for about $66.5 million.

Rogers Communications Inc. also offers customers home security services.

Telus estimates that its home security business added more than 12,000 new customers in the third quarter, bringing its total security subscriber base to about 100,000 prior to the ADT acquisition.

The ADT deal, which is expected to close in the fourth quarter, is subject to regulatory approval and other customary closing conditions.

David Paddon, The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

Interior Health will not expand Police and Crisis Team

Southeast Division Chief Superintendent Brad Haugli asked IH to expand the program

Rosslanders celebrate Canada Day in style

Locals organized a museum scavenger hunt, a Mt. Roberts flag-raising ceremony and evening fireworks

Hwy 1 flooding causes massive delays on certain Arrow Lakes ferry routes

Motorists have been waiting around three hours to get on ferries

Rossland Museum and Discovery Centre expands operations online

The facility also opened back up to the public earlier in June

Rossland’s Sourdough Alley a ‘muddy collection of shacks’

Rossland’s earliest thoroughfare was once derided as a ‘muddy collection of shacks’

13 new B.C. COVID-19 cases, Langley Lodge outbreak ends

Health care outbreaks down to four, 162 cases active

Alberta health minister orders review into response after noose found in hospital in 2016

A piece of rope tied into a noose was found taped to the door of an operating room at the Grande Prairie Hospital in 2016

B.C.’s major rivers surge, sparking flood warnings

A persistent low pressure system over Alberta has led to several days of heavy rain

B.C.’s Indigenous rights law faces 2020 implementation deadline

Pipeline projects carry on as B.C. works on UN goals

Nelson cyclist run over by truck

Driver ticketed for failing to yield right of way on left turn

‘Mind boggling’: B.C. man $1 million richer after winning Lotto 6/49 a second time

David O’Brien hopes to use his winnings to travel and of course keep playing the lottery

B.C. teacher loses licence after sexual relationships with two recently-graduated students

The teacher won’t be allowed to apply for a teaching certificate until 2035

Lower Mainland teacher facing child pornography charges

Elazar Reshef, 52, has worked in the Delta School District

Most Read