Telus Corp. is expanding its home and business security operations after buying ADT Security Services Canada Inc. for approximately $700 million.
The Vancouver-based company said Tuesday they want to focus more on developing internet-controlled automation features as well as monitoring tools and services around fires, floods, break-ins and carbon monoxide leaks.
ADT Canada employs about 1,000 people and has approximately 500,000 residential and business customers. Telus SmartHome Security and Secure Business, which was launched last year, is a similar business with a much smaller footprint.
Home security is an important aspect of the connected home strategy for Telus, and it comes with significant cross-selling opportunities with its current wireline products. With developments in IoT this is expected to expand even further.
Telus’ competitors have clued into this expanding business opportunity as well. In a deal that closed early 2018, Bell Canada parent BCE Inc. bought AlarmForce Industries for about $182 million. They later sold 30,000 AlarmForce customer accounts in British Columbia, Alberta and Saskatchewan to Telus for about $66.5 million.
Rogers Communications Inc. also offers customers home security services.
According to a press release, in the third quarter of 2019, Telus said it expects to have added more than 12,000 new customer additions to its security business, bringing the total security subscriber base to approximately 100,000 prior to the acquisition of ADT Canada.
The transaction is expected to close in the fourth quarter of 2019
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