AAA Alarms and SecurTek Manitoba strike deal
AAA Alarm Systems Ltd., a wholly-owned subsidiary of Manitoba Telecom Services Inc. ("MTS"), and SecurTek, a wholly-owned SaskTel subsidiary, have announced a joint agreement whereby AAA Alarms will acquire SecurTek's Manitoba customer accounts and a cash payment of approximately $1.5 million from SecurTek in exchange for AAA Alarm's accounts outside of Manitoba, predominately in Alberta.
"This transaction will enhance our strategic position as the leading communications provider in the province of Manitoba by allowing us to concentrate on our alarm services in our home market," said Kelvin Shepherd, president, consumer markets division, MTS.
"AAA Alarms is already the leading, trusted security service provider in Manitoba, and this deal will reinforce its established leadership in the market, improve its profitability, lower churn and present significant new opportunities to expand our successful full-service bundling strategy which combines our high-speed broadband, wireless, advanced high-definition IPTV with home security services. It is an approach that has helped MTS maintain some of the strongest telecommunications margins in North America within Manitoba, and an approach that we can now expand further."
"This agreement will allow SecurTek to focus on geographic growth in its target growth markets of Saskatchewan, Ontario, B.C. and Alberta," said Robert Watson, SaskTel President and Chief Executive Officer. "SecurTek is well positioned to thrive in the monitoring industry’s competitive market and we look forward to providing reliable and affordable security monitoring solutions to even more homes in Alberta with this acquisition."
SecurTek and AAA Alarms will begin servicing their respective customers effective June 29th, 2009. Both companies will honour existing contracts and are committed to ensuring service continues uninterrupted during the transition. After the customer transition is complete, SecurTek will become one of the largest providers in Alberta. AAA Alarms, long established as the leading brand in security services in Manitoba, will further strengthen its position as the market leader in the province.
SecurTek will maintain its monitoring station in Winnipeg as it provides redundancy for its existing monitoring services and is an effective and economical complement to the Yorkton monitoring station.