Telecom giant BCE buying AlarmForce for $166M to grow its position in security
November 07, 2017 - 5:29 AM
TORONTO - Telecom and media giant BCE Inc. says it will buy Canadian home security service AlarmForce Industries Inc. in a deal worth about $166 million.
George Cope, CEO of BCE and Bell Canada, says the acquisition will allow Bell to leverage its network in millions of Canadian homes in order to grow its position in security and automation services.
The deal will see BCE purchase all issued and outstanding common shares of AlarmForce (TSX:AF) for $16.00 per in an all-cash offer.
AlarmForce says the purchase price represents a 71 per cent premium to its closing share price of $9.34 on Nov. 6 and a 70 per cent premium to the 20-day volume weighted average price for the period ending Nov. 6.
Shareholders may also elect to receive BCE common shares (TSX:BCE) in lieu of cash, subject to proration and capped at 49.5 per cent of the total equity value.
Subject to customary closing conditions, the transaction is expected to be completed in January.
News from © The Canadian Press, 2017