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

Just Posted

14 arrested at blocked rail line in northern B.C., police say

But a Gitxsan hereditary chief says 14 were arrested, as fight over natural gas pipeline continues

Wet’suwet’en hereditary chiefs call for end of police patrols

Temporary closure of field office not enough to meet demands

Blockades remain in place as Wet’suwet’en hereditary chiefs returning to B.C.

Hereditary Chief Woos said they are ready to engage in nation-to-nation talks with the B.C.

CGL must revise impact assessment on Unist’ot’en Healing Center

Environmental Assessment Office not satisfied with report’s shortcomings

Trudeau: Time for blockades to end and Indigenous leaders to work with government

Prime minister says situation in Coastal GasLink pipeline dispute is ‘unacceptable and untenable’

Protecting privacy key to stopping spread of COVID-19, B.C. health officials say

The number of coronavirus cases in B.C. remains at seven

Toffoli scores OT winner as Canucks beat Habs 4-3

Demko makes 37 saves for Vancouver

Private clinics would harm ‘ordinary’ people using public system in B.C.: lawyer

Health Minister Adrian Dix announced in 2018 that the government would begin to fine doctors $10,000

B.C. terminates contract with hospice society refusing assisted death

Delta Hospice Society loses hospital service fund of $1.5 million

Child in hospital following fatal crash that killed father, sibling on B.C. highway

The single vehicle crash occured near Kamloops on Highway 5A

‘Die!’: Vernon councillor mailed death threat

This story contains information that might be sensitive to some readers

Hidden message connects Castlegar homeowners decades apart

The Rodgers family was surprised when a message fell out of the walls as they were renovating

Two B.C. men plead guilty to bus-terminal assault of man with autism in Ontario

Parmvir Chahil and Jaspaul Uppal due to be sentenced in June for aggravated assault

Most Read