BCE offers $16 a share to buy AlarmForce
Bell's major rival Rogers is already a player in the home security space
Telecom conglomerate BCE Inc. is offering to buy home security firm AlarmForce Industries Inc. for $166 million.
The deal, announced after stock markets closed on Monday, would see BCE offer $16 a share for AlarmForce, one of Canada's leading home security firms with 100,000 customers for services such as intrusion alarms and smoke, flood and carbon monoxide detection.
George Cope, CEO of BCE and Bell Canada, says the acquisition will allow Bell to leverage its network in millions of Canadian homes in order to grow its position in security and automation services.
"It's a natural next step for Bell as one of Canada's most trusted brands in residential services," Cope said.
Bell's major rival Rogers is already a player in the home security space through its Smart Home Monitoring service.
At $16 a share, Bell's offer is a 71 per cent premium to where the shares were on Monday before the deal was announced. In lieu of cash, AlarmForce shareholders can elect to receive their compensation in the form of BCE shares.
Pending regulatory and shareholder approval, the deal is expected to close in January.