Shares of security systems and services giant ADT (ADT) - Get Report rose Tuesday after the company said it was selling its "capital intensive" Canadian operations to Canadian telecommunications giant Telus (TU) - Get Report for approximately $500 million (C$700 million) in cash.
Shares of ADT gained 3.83% to $6.51 in morning trading on Tuesday after the Boca Raton, Fla.-based company said it has agreed to sell ADT Security Services Canada to Vancouver-based Telus.
"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," CEO Jim DeVries said in a statement.
Telus is a Canadian national telecommunications company that provides telecommunications products and services including internet access, voice, entertainment, healthcare, video, and IPTV television. It also operates one of Canada's larger mobile networks.
Separately, ADT said its board of directors approved a one-time special dividend of 70 cents a share. Details including the record date for eligible shareholders and payment will be provided in conjunction with the closing of the transaction, the company said.
Shares of Telus were up 0.45% at $35.78 in morning New Yort trading on Tuesday.
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