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Protection One Buys Rogers' Security Unit

July 01, 1998| From Bloomberg News

Rogers Communications Inc., Canada's largest cable television company, said Tuesday that it sold its security alarm business to Protection One Inc., the second-biggest U.S. residential burglar alarm company, for an undisclosed amount.

With the acquisition, Culver City-based Protection One, which catapulted into the No. 2 slot with its purchase of Network Multi-Family Corp. in February, moves into the highly competitive Canadian market.

Toronto-based Rogers Canguard Inc. is Canada's fifth-largest security alarm provider and has as many as 35,000 subscribers providing $476,000 a month in revenue.

Protection One plans to expand in Canada's three largest metropolitan cities, Toronto, Ottawa and Vancouver, where Canguard has established businesses, the company said.

"I think you'll see us grow as we have in the U.S. by capturing new growth and continuing to participate in the consolidation by being an aggressive acquirer," said Monty Cornell, Protection One's treasurer.

Toronto-based Rogers has been selling assets to reduce its $3.8-billion debt. In June, it sold its local phone service unit to Calgary, Canada-based MetroNet Communications Corp. for $740 million in cash and stock. The transaction closed Tuesday.

Rogers said the $400 million it received in cash will be used to repay most of its bank debt and to redeem $150 million worth of high-yield bonds.

Protection One's shares rose 6 cents to close at $10.94 on Nasdaq.

In February, Protection One acquired Network Multi-Family Corp. from Dallas-based Western Resources Inc. for about $175 million in cash, expanding its alarm service into the apartment and condominium market.

Protection One has annual revenue of about $1 billion.

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