Schneider Electric To Acquire Tyco?

 In only what could be described as huge news for the industry, shares of Tyco International, parent of ADT, were up by almost 4 percent this morning after news leaked that Schneider Electric was mulling a bid for the company.

If the acquisition did happen, the addition of Tyco would make Schneider Electric the world's largest maker of security systems.

Brian Langenberg of Langenberg & Co. said Tyco would sell for roughly 10 times its operating earnings, somewhere around $65 a share.

The analyst also said Schneider would have to bid high enough to discourage possible takeover rivals including Honeywell, Siemens, United Technologies or a telecommunications/cable firm.

Tyco made news in early 2010 with the $2 billion acquisition of Broadview Security. Schneider Electric already has a strong foot in the industry as owner of camera provider Pelco, but is more widely known for its power management solutions.

What do you think about this possible acquisition? Would it be good or bad for the security industry?


Posted by Brent Dirks on Apr 11, 2011

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