announced today that it has entered into a definitive agreement with Cambridge Protection Industries, L.L.C., a portfolio company of GTCR Golder Rauner, L.L.C., to acquire its electronic security systems businesses, which includes SecurityLink, and provides services to approximately one million residential, commercial and government customers. The transaction is valued at approximately $1 Billion.The businesses have annual revenues of approximately $500 million.
According to L. Dennis Kozlowski, Tyco's Chairman and Chief Executive Officer: "The addition of SecurityLink and the other Cambridge business
lines continues our strategy of expanding our base of recurring revenues. Also, as with our existing ADT operations, we expect this business to generate healthy organic growth with attractive incremental margins.
Looking at the near-term, we expect the transaction will be immediately accretive to Tyco's earnings per share and free cash flow per share. The integration of the Cambridge businesses with ADT will provide product,
service and operational synergies, which will result in ongoing positive benefits to Tyco shareholders."