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ADT Corporation (NYSE: ADT) today announced it has executed a definitive agreement to acquire Reliance Protectron Inc., a subsidiary of Reliance Comfort Limited Partnership, a portfolio company of investment funds managed by Alinda Capital Partners, for total cash consideration of CAD $555 million (approximately USD $500 million). The acquisition of Protectron will significantly strengthen ADT’s Canadian operations and create a combined security industry leader in Canada, differentiated by its ability to reach consumers and provide them with better service and more choice across a variety of traditional security and automation technologies.
Protectron is a leading provider of monitored security services in Canada. The acquisition brings ADT 400,000 residential and commercial customers including 31,000 contract monitoring accounts, and CAD $12 million (approximately USD $11 million) in associated recurring monthly revenue. Protectron has a highly satisfied customer base with greater levels of customer retention than other major players in the North American electronic security industry. Protectron will continue to be headquartered in Montreal under ADT’s ownership. It enjoys strong brand awareness and ADT will continue using the Protectron name.
Naren Gursahaney, ADT's chief executive officer, commented on the acquisition, "Protectron brings many strengths as we invest in growing our business in Canada. Our long-standing commitment to customer service aligns perfectly with Protectron's, as their seasoned management team has been extremely successful in growing and retaining their customer base through outstanding customer support. Protectron has created an extensive dealer network and an effective direct sales force, which have enabled them to generate significant subscriber growth at attractive cost levels. Protectron has also begun a concerted effort to sell home automation products and services, which will be accelerated by ADT's considerable strengths in this area."
“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,” Gursahaney added.