ADT Margin and Synergy Outlook from Broadview Acquisition

Tyco executives discussed the financial impact of the Broadview acquisition on ADT's margins, expecting a 50 basis point improvement in the first full year and up to 150 basis points by year two. They also noted the fragmented and competitive nature of the residential and small business security industry.

“Bringing in Broadview for a full year, in the first full year, will add something in the neighborhood of 50 basis points of margin to ADT on a global basis, and then based on the incremental synergies that we would expect to get in year two, we start to move up to closer to 150 basis points of improvement to ADT overall.”

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