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.

Just Posted

County council hears ditch, culvert issues in hamlets

Report given to council on hamlet stormwater situation

Wetaskiwin City Council Approves 2020 Capital and Operating Budgets

Estimated overall 2.28 percent tax rate decrease for 2020

Get a grip in the winter time

Winter tires have technology that proves them superior

County of Wetaskiwin moves ahead on tax recovery sale

Revenue Canada agrees to let County of Wetaskiwin sell property

County of Wetaskiwin says four per cent tax increase to pay for province’s cops

By 2023 county will be looking at over four per cent tax increase to pay for provincial announcement

VIDEO: Merriam-Webster declares ‘they’ its 2019 word of the year

Declared word of year based on a 313-per-cent increase in look-ups on the company’s search site

Alberta premier opens war room to promote ‘truth’ about energy industry

Effort includes a $2.5-million public inquiry into foreign funding of anti-oil advocacy groups

Feds urge Air Canada to fix booking problems as travel season approaches

The airline introduced the new reservation system more than three weeks ago

Almost 14,000 Canadians killed by opioids since 2016: new national study

17,000 people have been hospitalized for opioid-related poisoning

Thunberg ‘a bit surprised’ to be Time ‘Person of the Year’

‘I could never have imagined anything like that happening,’ she said in a phone interview

Toronto Raptors, Don Cherry top the list of Canadians’ Google searches in 2019

‘Champions’ was the theme of the last year, Google said

Day parole revoked for man who strangled wife, buried body in their Calgary home

Parole Board revoked Allan Shyback’s day parole after he had sex with a massage parlour worker

Alberta plans to reduce surgery wait-times by building operating rooms, using private clinics

Health minister says goal is to have 80,000 more surgeries done over the next 3 1/2 years

Sylvan Lake woman charged with fraud over $500,000

Rimbey RCMP launched an investigation in July 2019 with the suspect turning herself in on Aug. 30

Most Read