BCE Announces Agreement to Acquire AlarmForce Industries
BCE Inc. (Bell) announced it will acquire AlarmForce Industries Inc., a Canadian leader in home security and monitoring services, in a transaction valued at approximately $166 million.
“Bell is excited to welcome the AlarmForce team as we pursue the significant growth and innovation opportunities represented by the connected home,” said George Cope, president and CEO of BCE Inc. and Bell Canada. “It's a natural next step for Bell as one of Canada’s most trusted brands in residential services. Leveraging Bell’s network and service leadership and our place in millions of Canadian homes, we look forward to growing our nascent position in security and automation services to ensure Bell residential customers are at the leading edge of connected home innovation.”
AlarmForce is one of the largest home and business security companies in Canada with more than 100,000 subscribers, and offers solutions such as intrusion alarms and smoke, flood and carbon monoxide detection; automation services including lighting, climate and lock control systems; and in-home and mobile medical alert systems.
Combining the assets and experience of an established home security and monitoring provider like AlarmForce with Bell’s strength in networks, customer service and distribution will enable Bell to quickly expand into the connected home sector in Ontario and Québec. Bell currently provides residential and business customers in Atlantic Canada and Manitoba with security and monitoring services from Bell Aliant NextGen Home Security and AAA Security, a Bell MTS company.
Alongside new service bundling and technology development opportunities, Bell expects to achieve significant synergies in network connectivity, distribution, installation and customer service operations from the integration of AlarmForce with its existing residential services business.
The AlarmForce acquisition will be completed through a plan of arrangement under which Bell will acquire all the issued and outstanding common shares of AlarmForce for $16.00 per share in an all-cash offer, for a total transaction equity value of $184 million. AlarmForce shareholders may elect to receive BCE common shares in lieu of cash, subject to proration, capped at 49.5 percent of the total equity value. Subject to customary closing conditions, including, without limitation, court, AlarmForce shareholder and stock exchange approvals, the transaction is expected to close in January 2018.