|
Tyco to buy Sensormatic
|
 |
August 3, 2001: 10:01 a.m. ET
Conglomerate to pay $2.3B in stock for electronic security firm
|
NEW YORK (CNNfn) - Tyco International Ltd. agreed Friday to acquire electronic security firm Sensormatic Electronics for $2.3 billion in stock, further expanding the diversified manufacturer's holdings.
Under terms of the proposed acquisition, shareholders of Sensormatic, known for its electronic sensors affixed to clothing to deter shoplifters, would receive Tyco common stock valued at $24 for each Sensormatic share. That represents a 61 percent premium over Sensormatic's Thursday closing price of $14.94.
Tyco (TYC: down $0.50 to $52.28, Research, Estimates) stock fell while shares of Sensormatic (SRM: up $8.16 to $23.10, Research, Estimates) soared in early trading.
Under the deal, Tyco would assume about $116 million in Sensormatic debt, the company said.
Tyco said Sensormatic would complement its own fire and security business, which includes ADT.
The company said the boards of both companies already have approved the transaction, which is expected to be tax- free to Sensormatic shareholders.
The agreement calls for a Tyco subsidiary to make a tender offer for all of Sensormatic's 79.4 million common shares at $24 each. Tyco reserves the right to terminate the transaction if its average share price a day before the scheduled merger is below $46.25. 
|
|
|
|
|
|
Tyco
Sensormatic
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
