AAA Alarm Systems, a wholly-owned subsidiary of Manitoba Telecom Services ("MTS"), and SecurTek, a wholly-owned SaskTel subsidiary, announced a joint agreement whereby AAA Alarms will acquire SecurTek's Manitoba customer accounts and a cash payment of approximately $1.5 million from SecurTek in exchange for AAA Alarm's accounts outside of Manitoba, predominately in Alberta.
"This transaction will enhance our strategic position as communications provider in the province of Manitoba by allowing us to concentrate on our alarm services in our home market," said Kelvin Shepherd, President of Consumer Markets for MTS. "AAA Alarms is already the trusted security service provider in Manitoba, and this deal will improve its profitability, lower churn and present significant new opportunities to expand our successful full-service bundling strategy which combines our high-speed broadband, wireless, advanced high-definition IPTV with home security services. It is an approach that has helped MTS maintain some of the strongest telecommunications margins in North America within Manitoba, and an approach that we can now expand further."
"This agreement will allow SecurTek to focus on geographic growth in its target growth markets of Saskatchewan, Ontario, B.C. and Alberta," said Robert Watson, President and CEO of SaskTel. "SecurTek is well positioned to thrive in the monitoring industry's competitive market and we look forward to providing reliable and affordable security monitoring solutions to even more homes in Alberta with this acquisition."
SecurTek will maintain its monitoring station in Winnipeg as it provides redundancy for its existing monitoring services and is an effective and economical complement to the Yorkton monitoring station.