Business
FirstService announces the divestiture of its security division to ADT Security
FirstService intensifies strategic focus on global diversified real estate services Proceeds from...
About this update from Firstservice Corp
[{"type":"text","content":"\n\n\n\nFirstService intensifies strategic focus on global diversified real\n\n\nestate services\n\n\nProceeds from divestiture combined with existing funds to drive growth\n\n\nTORONTO, April 14 /CNW/ - FirstService Corporation ("FirstService")\n(NASDAQ: FSRV; TSX: FSV and FSV.PR.U) announced today that it has entered into\na definitive agreement to sell its integrated security division, FirstService\nSecurity, to ADT Security ("ADT"), a unit of Tyco International (NYSE: TYC).\nUnder the terms of the deal, ADT will acquire 100% of the shares of\nFirstService Security from FirstService for cash on closing and will continue\nto operate the business under the direction of the current senior management\nteam. FirstService Security operates under the Intercon Security brand name in\nCanada and Security Services & Technologies ("SST") in the United States. The\ntransaction is valued at approximately US$187 million and has been approved by\nthe board of directors of both companies. The transaction is expected to close\nas soon as practicable following receipt of required regulatory approvals and\nsatisfaction of other customary closing conditions.\n\n\n"The sale of our integrated security services division is a key strategic\nmove by FirstService to intensify our focus as a global provider of\ndiversified real estate services," said Jay Hennick, Founder and Chief\nExecutive Officer of FirstService. "While the future prospects of our security\ndivision are excellent, particularly its strong internal growth potential, we\nconcluded that accelerating the growth of our three real estate services\nplatforms through a combination of internal growth and acquisitions would\ncreate greater long-term value for the shareholders of FirstService. We are\nvery pleased to have found the right buyer for this highly sought after asset,\nand are confident that industry leading ADT will take this business to the\nnext level."\n\n\n"FirstService has been an excellent partner in helping us grow our\nbusiness over the years and they were instrumental in working with us to\ndevelop our industry leading security systems integration practice, targeting\nadvanced electronic system design and installation services for major clients\nthat value the importance of high end security systems, and the mission...