Tyco International
(TYC)
said Monday one of its subsidiaries has agreed to acquire
Scott Technologies
(SCTT)
, a manufacturer of life-support and respiratory products, for about $400 million.
According to the terms of the merger deal, Scott shareholders will get $23 worth of Tyco shares for each of their shares. The exact number of Tyco shares will be determined later. Scott shares were down 63 cents, or 2.7%, to $22.75 in
Nasdaq
trading Monday. Tyco shares were up $1.50, or 2.5%, to $61.78 on the
New York Stock Exchange
.
Tyco said the deal, which is awaiting regulatory and shareholder approval, will add "significant recurring revenue" to its Tyco Fire & Security services subsidiary.
