The acquisition is the first major deal for Tyco since 2002, when the company was marred by scandal that sent former chief executive Dennis Kozlowski to prison along with former chief financial Mark Swartz.
Tyco executives hope the purchase will push the company’s ADT security unit into more homes. ADT commands nearly 22% of the North American market for residential and small-business security, while Brink’s holds 4%. The move adds Brinks’ 1.3 million subscribers to ADT’s 7 million.
Tyco will pay $42.50 a share in cash and stock for Brink’s, a 36% premium to Friday’s closing stock price. Brink’s shareholders can choose whether to be paid in cash, stock or a mix of the two, but Tyco won’t pay more than about 30% of the deal’s value in cash.
The deal is expected to close in the second half of Tyco’s fiscal year, which began Sept. 26.
The company also raised its first-quarter earnings per share guidance to 63 cents to 65 cents a share from its previous forecast of 48 cents to 50 cents.
Shares of Tyco added 1.2% to $37.99.
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