Fidelity Security Group has bought ADT, the South African subsidiary of New York-listed Tyco, for R1.9bn.

Tyco said in statement that it signed a definitive agreement to sell its security business in SA for $140m.

The deal is expected to be completed in 2017.

Fidelity said ADT would significantly boost its armed response and security technology offering.

ADT is the first major foreign-owned private security company to be sold to a South African business since the Private Security Industry Regulation Amendment Act, which has not yet been signed into law, was proposed.

The act contains a clause that would force multinational private security companies such as Chubb, Securitas and G4S as well as security equipment manufacturers, distributors, installers and suppliers to relinquish 51% or more of their shareholding to local investors.

Fidelity Security Group said it was a 100% South African, 54.62% black-owned company.

Fidelity Security Group CEO Wahl Bartmann said the acquisition would enhance the company’s position as a provider of residential and commercial integrated security solutions in Southern Africa.

"The acquisition also allows us to add an exceptionally strong team with deep industry knowledge and experience to our current portfolio," Bartmann said.

"Not only does Fidelity bring a wealth of diversified experience and knowledge but the association also provides us with the capacity to provide our customers with a more integrated, proactive and robust security and proactive guarding service," ADT CEO Stuart Clarkson said.

ADT provides security-related services to more than 365,000 residential, small and medium-sized enterprises and larger commercial customers. It has a nationwide network that includes 26 branch locations and about 9,700 employees.

Fidelity will have more than 168 points of presence across Southern Africa and employ 57,000 people, following the acquisition.

After the transaction is completed, Tyco will continue to provide its fire, security and life safety products in SA.

After the acquisition, ADT will continue to operate under the brand Fidelity ADT. It will continue to act as a local distributor for Tyco’s residential and commercial security products.

In 2015 Fidelity bought Bidvest Protea Coin Cash Management Solutions.

The acquisition is subject to regulatory approvals, including approval from the competition authorities.

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