Industrial conglomerate Tyco International
The cash-and-stock deal values Broadview at $42.50 a share, a more than 35 percent premium to its Friday closing price of $31.42. Irving, Texas-based Brink's Home Security Holdings Inc
Tyco plans to combine Broadview with its ADT security business. The company expects the deal to add to earnings before special items by about 7 cents in the first full year after closing.
The deal has been approved by the boards of both companies.
The acquisition will help Tyco, which makes security and fire-control systems, boost its presence in these markets, Chief Executive Ed Breen said in a statement.
Broadview's strong presence in the North American security market ... will enhance ADT's financial performance and support our long-term growth in this large, fragmented and highly competitive industry, Breen said.
Under the terms, Brink's shareholders may elect to receive either cash or a combination of stock and cash, subject to various criteria.
Tyco also said it expects to earn between 63 cents and 65 cents a share from continuing operations, excluding special items, for the fiscal first quarter of 2010. Previously, it had said it expects to earn between 48 cents and 50 cents a share.
Tyco said the preliminary results included revenue of $4.25 billion for the quarter, exceeding previous guidance of $4.1 billion.
But Tyco maintained its previous full-year earnings forecast of $2.30 to $2.50 per share before items, attributing it partly to flat order rates.
Shares of Tyco closed Friday at $37.54 on the New York Stock Exchange.
(Reporting by Anupreeta Das; editing by Martin Golan)