ADT Acquires Canada’s Protectron
The security monitoring industry in Canada contains a vast number of companies, big and small, vying for as much of the marketplace as they can get; however, the pairing of two players in the space could change the landscape of the market.
ADT, www.adt.com, has announced a deal to acquire Reliance Protectron Inc., www.protectron.com, for approximately $500 million. The move will give a major boost to ADT’s presence in the Canadian market, and, according to officials, provide customers with better service and increased options to choose from regarding traditional security and automation technologies.
By acquiring Protectron—a leading Canadian security service—ADT stands to take in 400,000 residential and commercial customers, 31,000 contract monitoring accounts, and close to $11 million in associated recurring monthly revenue. According to Naren Gursahaney, CEO for ADT, “The creation of a strong, standalone business in Canada with a dedicated management team will position us to accelerate our growth in this important and attractive market.”
Michael Geltzeiler, ADT’s CFO, sees the deal as being one that melds strengths each company brings to the table. “The deal also creates opportunities for operational and administrative synergies, resulting in a more-efficient, more-successful ADT,” he said.
Protectron will still be able to call Montreal its home under ADT’s ownership; although some of ADT’s administrative functions currently run in the U.S. will relocate north of the border.
The deal still needs to clear some regulatory approvals before becoming official, but ADT expects things to be wrapped up this summer.
Want to tweet about this article? Use hashtags #security, #monitoring, #marketplace, #business, #acquisition