Tyco purchases remaining Sensormatic franchise
PEMBROKE, Bermuda--Tyco International announced in June that it has purchased substantially all of the assets of Winner Security Services, for approximately $90 million. Winner is a franchisee of Sensormatic Electronics Corporation in the states of Pennsylvania and Delaware, which Sensormatic has been trying to acquire since 1998.
The franchise was originally granted by Sensormatic Electronics Corporation more than 40 years ago, prior to Tyco's acquisition of Sensormatic in 2001. Under the original agreement, Winner was granted rights to sell, install and service certain Sensormatic products and was entitled to commissions on Sensormatic products sold, installed or shipped into its franchise territories by other companies.
Those rights expired in 1998, and Sensormatic tried to exercise a clause in a lease agreement that would allow the company to purchase Winner. However, the company notified Winner of its intentions 47 days too late, and courts ruled in a final judgment in 2005 the lease clause had not been met.
Sensormatic, part of Tyco International, is a provider of retail loss prevention solutions. The Sensormatic solutions portfolio is sold through ADT and Tyco partners around the world.