Tyco looks to acquire Visonic
BOCA RATON, Fla.—Tyco International, parent company of ADT, is in talks to acquire security product manufacturer Visonic, which is based in Tel Aviv, Israel.
“I can confirm that we’re in discussion with Visonic and that may or may not lead to definitive transaction,” Tyco spokesman Paul FitzHenry told Security Systems News on June 21. He declined further comment.
The report cites a Visonic statement that says the company will be sold under a “60-day exclusivity agreement ... The terms of the deal and the price have not yet been agreed and there is no certainty the talks will lead to an agreement.” However, the report says that Visonic founder and chairman Yaacov Kotlicki, “who holds 70-per cent of the company, has agreed to sell his entire stake.”
On May 18, Tyco International CEO Ed Breen was quoted as telling investors at a Florida conference that Tyco was about to close a deal. "We're actually close on one. I'm really excited about it. It's only $110 million but it's technology that actually has revenue with it and that really fits in to one of our core platforms and will really give us a competitive advantage," the report said.
Visonic recently announced a deal where it would embed its security products with Zigbee technology so that its products would work with iControl’s OpenHome system. ADT’s interactive services product Pulse is powered by the iControl platform. Tyco is one of several major investors in iControl.
During a November 2010, Avi Barir, Visonic president and CEO told Security Systems News that Visonic was changing its wireless technology, ramping up its North American operations and that it was ready “to compete with the giants [manufacturers like Honeywell and UTCFS].” He said Visonic had the North American market in mind as a “major target for this launch of its new wireless products.”
Visonic, had revenues of $85.5 million in business worldwide in 2009. North American revenues accounted for about 13 percent ($11.1 million). The company manufacturers security systems, PERS, and home management systems, PowerG-based and PowerCode-based wireless sensors, keyfobs, and sirens; wired detectors and CCTV motion control systems.
It was founded in 1973 and listed on the Tel Aviv Stock Exchange in 2006. Shares were up today on reports of the sale.
Security Systems News continues to report on this story.