Tyco has signed a definitive agreement to sell its security business in South Africa, which operates locally under the ADT brand, to Fidelity Security Group for approximately ZAR 1.9 billion (US$140 million).
This business provides security monitoring services, including dispatch of armed response guards, as well as fire detection and protection, access control and other security-related services, to residential and commercial customers. The financial impact of this planned sale was previously disclosed as part of Tyco’s fiscal third quarter earnings report.
After the transaction is completed, Tyco will continue to provide its fire, security and life safety products in South Africa. ADT will serve as a local distributor for Tyco’s residential and commercial security products and solutions, as well as Tyco’s specialized performance solutions for retail businesses.
The transaction is expected to close in the fiscal first quarter of 2017 and is subject to customary closing conditions, including regulatory approvals.
In fiscal year 2016, the business is expected to generate revenue of approximately US$160 million.
Tyco is one of the world’s largest fire protection and security companies. Fidelity Security Group (Fidelity) is an integrated security solutions provider based in South Africa.