Boston, MA 05\/01\/2014 (wallstreetpr) –\u00a0ADT Corp (NYSE:ADT) <\/b>will acquire Reliance Protectron for cash of CAD $555 million (~ $500 million) to strengthen its operation in Canada and offer a broad range of services including automation technologies and traditional security.<\/p>\n
Mutual benefit<\/b><\/p>\n
Protectron is one of Canada\u2019s leading security services provider with large customer base. It is well known for its strong brand name and outstanding customer retention ability over its business. The collaboration will give access to 400K residential and commercial customers and it includes 31,000 contract accounts for monitoring services.<\/p>\n
Protectron showed significant operating results with 16% growth in subscribers since 2009 due to a strong presence and solid track record in Canada. It usually generates an average of ~$11 million monthly revenue from its existing customers. ADT expects benefit from Protectron\u2019s extensive dealer network that will create subscriber growth at an effective rate and provide the potential opportunity to improve ARPU.<\/p>\n
Moreover, ADT Corp (NYSE:ADT)\u2019s core strength will support to sell Protectron\u2019s home automation products and services. ADT expects to close the transaction by the end of 2014 that are subject to regulatory approvals in Canada and United States.<\/p>\n
Moving forward<\/b><\/p>\n
ADT is one of leading provider of security services that includes electronic security, automation and monitoring services in North Americans home and small businesses. However, it has limited products and services to access over industrial and wholesale subscribers across North America that creates opportunity for its competitors. Therefore, ADT prefers to merge with Protectron to widen its services across all customers.<\/p>\n
The acquisition will provide growth over ADT Corp (NYSE:ADT)\u2019s recurring revenue, operating margin and free cash flow. As a result, ADT expects an accretive revenue growth of 3% to 4% and 50 basis points expansion over adjusted EBITDA in FY2014. The Company also expects 5% to 10% increase over free cash flow in FY2014; however, it may vary depending on the overall deal transaction.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 05\/01\/2014 (wallstreetpr) –\u00a0ADT Corp (NYSE:ADT) will acquire Reliance Protectron for cash of CAD $555 million (~ $500 million) to strengthen its operation in […]<\/p>\n","protected":false},"author":13,"featured_media":20885,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[6251,790],"stock_ticker":[],"class_list":["post-20884","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-adt-corp-nyseadt","tag-nyseadt","entry"],"acf":[],"yoast_head":"\n