Tyco International To Buy Australian Security Business For $171 Million

Tyco International Ltd. (TYC) said it has agreed to buy an Australian security business from investment firm Oceania Capital Partners Ltd. (OCP.AU) for A$171 million in Australian dollars, a roughly equal amount in U.S. currency.

The deal would expand Tyco's ADT Security business, the world's largest electronic security provider with about 9 million customers. Tyco has been selling businesses and adding units lately, reshaping itself from a diversified manufacturer to a more services-oriented company.

The target, Signature Security Group, is the largest Australian-owned electronic security company in Australia and New Zealand. For its latest fiscal year, which ended in June, earnings before income taxes rose 4.3% as revenue climbed 7.8% to A$80.2 million, according to Oceania's website.

Tyco expects the deal to close in its fiscal third quarter, which starts April 1.

Tyco shares closed Tuesday at $46.16 and were inactive premarket. The stock had gained 31% in the past year.

-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240; [e-mail]