Tyco to perform acquisition through fully-owned Israeli subsidiary
Visonic. State-of-the-art domestic security systems
Tyco to buy Visonic for $99.4M
Acquisition reflects value of $2.26 per share for Visonic. Companies expect to complete deal by end of December
Visonic reported Wednesday night that Tyco's auditing committee and shareholders have given the green light for the acquisition of all the Israeli company's shares and options, Calcalist has revealed.
Tyco will pay Visonic $99.4 million, which reflect a value of $2.26 per share. The companies expect to conclude the deal by December this year.
Tyco will perform the acquisition through its fully-owned Israeli subsidiary Arrowhead. The deal will be a reverse triple merger meaning that Tyco will merge into Arrowhead and subsequently be delisted from the Tel Aviv Stock Exchange.
For the purpose of the merger, Visonic's directorate sought an expert opinion from economics and accountancy pundit Professor Yoram Eden, who determined that Visonic's price tag is fair and reasonable.
The merger deal is pending approval on part of Visonic's shareholders and the antitrust commissioner.
Visonic develops, manufactures and exports state-of-the-art domestic security systems, and at the time of Calcalist's publication of the negotiations with Tyco it was traded on TASE on a NIS 140 million ($38 million) market cap, thus the deal reflects over a 100% premium.
Visonic operates out of the Tel Aviv's high-tech center and is controlled by Yaacov Kotlicki (71.4%).
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