Bell leveraging its technology leadership and #1 brand in
residential communications to expand the connected home
opportunity
MONTRÉAL and TORONTO,
Nov. 6, 2017 /CNW Telbec/ - BCE
Inc. (Bell) (TSX: BCE) (NYSE: BCE) today announced it will acquire
AlarmForce Industries Inc. (TSX: AF), a Canadian leader in home
security and monitoring services, in a transaction valued at
approximately $166 million.
"Bell is excited to welcome the AlarmForce team as we pursue the
significant growth and innovation opportunities represented by the
connected home. It's a natural next step for Bell as one of
Canada's most trusted brands in residential services," said
George Cope, President and CEO of
BCE Inc. and Bell Canada.
"Leveraging Bell's network and service leadership and our place in
millions of Canadian homes, we look forward to growing our nascent
position in security and automation services to ensure Bell
residential customers are at the leading edge of connected home
innovation."
AlarmForce is one of the largest home and business security
companies in Canada with more than
100,000 subscribers, and offers solutions such as intrusion alarms
and smoke, flood and carbon monoxide detection; automation services
including lighting, climate and lock control systems; and in-home
and mobile medical alert systems.
Combining the assets and experience of an established home
security and monitoring provider like AlarmForce with Bell's
strength in networks, customer service and distribution will enable
Bell to quickly expand into the connected home sector in
Ontario and Québec. Bell currently
provides residential and business customers in Atlantic Canada and Manitoba with security and monitoring services
from Bell Aliant NextGen Home Security and AAA Security, a Bell MTS
company.
Alongside new service bundling and technology development
opportunities, Bell expects to achieve significant synergies in
network connectivity, distribution, installation and customer
service operations from the integration of AlarmForce with its
existing residential services business.
Details of the transaction
The AlarmForce acquisition
will be completed through a plan of arrangement under which Bell
will acquire all the issued and outstanding common shares of
AlarmForce for $16.00 per share in an
all-cash offer, for a total transaction equity value of
$184 million. AlarmForce shareholders
may elect to receive BCE common shares in lieu of cash, subject to
proration, capped at 49.5% of the total equity value. Subject to
customary closing conditions, including, without limitation, court,
AlarmForce shareholder and stock exchange (TSX and NYSE) approvals,
the transaction is expected to close in January 2018.
Caution concerning forward-looking statements
Certain
statements made in this news release are forward-looking
statements. These statements include, without limitation,
statements relating to the proposed acquisition by BCE Inc.
("Bell") of all of the issued and outstanding common shares of
AlarmForce Industries Inc. ("AlarmForce"), the expected timing of,
and certain benefits expected to result from, such proposed
transaction, and other statements that are not historical facts.
All such forward-looking statements are made pursuant to the "safe
harbour" provisions of applicable Canadian securities laws and of
the United States Private Securities Litigation Reform Act of
1995.
Forward-looking statements, by their very nature, are subject to
inherent risks and uncertainties and are based on several
assumptions, both general and specific, which give rise to the
possibility that actual results or events could differ materially
from our expectations expressed in or implied by such
forward-looking statements. As a result, we cannot guarantee that
any forward-looking statement will materialize and we caution you
against relying on any of these forward-looking statements. The
forward-looking statements contained in this news release describe
our expectations at the date of this news release and, accordingly,
are subject to change after such date. Except as may be required by
Canadian securities laws, we do not undertake any obligation to
update or revise any forward-looking statements contained in this
news release, whether as a result of new information, future events
or otherwise. Forward-looking statements are provided herein for
the purpose of giving information about the proposed transaction
referred to above and its expected impact. Readers are cautioned
that such information may not be appropriate for other
purposes.
The completion and timing of the proposed transaction are
subject to customary closing conditions, termination rights and
other risks and uncertainties including, without limitation, court,
shareholder and stock exchange (TSX and NYSE) approvals.
Accordingly, there can be no assurance that the proposed
transaction will occur, or that it will occur on the terms and
conditions, or at the time, contemplated in this news release. The
proposed transaction could be modified, restructured or terminated.
There can also be no assurance that the benefits expected to result
from the proposed transaction will be realized.
Notice to U.S. shareholders of AlarmForce Industries
Inc.
The transaction contemplated by this news release
involves the securities of Canadian companies and will be subject
to Canadian disclosure requirements that are different from those
of the United States. The BCE Inc.
common shares to be issued pursuant to a plan of arrangement
described herein will not be registered under the U.S. Securities
Act of 1933 pursuant to an exemption from the registration
requirements of such Act. Financial statements included or
incorporated by reference in the circular relating to the
transaction will have been prepared in accordance with Canadian
accounting standards and may not be comparable to the financial
statements of U.S. companies.
About AlarmForce
AlarmForce provides security
alarm monitoring, personal emergency response monitoring, video
surveillance and related services to residential and commercial
subscribers throughout Canada. More information about the Company's
products and services can be found at www.alarmforce.com.
About BCE
Canada's largest communications company, BCE
provides a comprehensive and innovative suite of broadband
wireless, TV, Internet and business communication services
from Bell Canada, Bell Aliant and Bell MTS. Bell Media is
Canada's premier multimedia company with leading assets in
television, radio, out of home and digital media. To learn more,
please visit Bell.ca.
The Bell Let's Talk initiative promotes Canadian mental health
with national awareness and anti-stigma campaigns like Bell Let's
Talk Day, and provides significant Bell funding of mental health
care and access, research and workplace leadership initiatives. To
learn more, please visit Bell.ca/LetsTalk.
Media inquiries:
Marc
Choma
613-785-0622
marc.choma@bell.ca
@Bell_News
Investor inquiries:
Thane Fotopoulos
514-870-4619
thane.fotopoulos@bell.ca
SOURCE Bell Canada