Tyco has signed a definitive agreement to sell its security business in South Africa, which operates locally under the ADT brand, to Fidelity Security Group for approximately ZAR 1.9 billion (USD 140 million). This comes the day after Tyco shareholders approved all matters related to the proposed merger with Johnson Controls at an extraordinary general meeting of shareholders held in Dublin. Johnson Controls shareholders also voted to approve the merger at a special general meeting in Dallas. The Southern African Tyco business provides security monitoring services, including dispatch of armed response guards, as well as fire detection and protection, access control and other security-related services, to residential and commercial customers.
The financial impact of this planned sale was previously disclosed as part of Tyco’s fiscal third quarter earnings report on July 29, 2016. After the transaction is completed, Tyco will continue to provide its fire, security and life safety products in South Africa. ADT will serve as a local distributor for Tyco’s residential and commercial security products and solutions, as well as Tyco’s specialised performance solutions for retail businesses. The transaction is expected to close in late fiscal first quarter of 2017 and is subject to customary closing conditions, including regulatory approvals. The financial results of this business are reported within the Rest of World Integrated Solutions & Services segment. In fiscal year 2016, the business is expected to generate revenue of approximately USD 160 million.
Fidelity Security Group is Southern Africa’s largest integrated security solutions provider and the industry leader in protection innovation. Fidelity offers a vast range of security services (guarding, cash solutions and integrated armed response) and related products and has around 47,000 employees across 142 integrated points of presence throughout Southern Africa.
