security services provider Automated Security (Holdings) Plc.

ADT said the buy-out of ASH makes ADT the largest provider of security systems in Britain and also makes it the market leader in Southern California through an ASH subsidiary.

Under the deal, ASH shareholders will receive new ADT common shares on the basis of three ADT common shares for every 92 ASH common shares held.

Different arrangements are being made for holder of ASH preference shares.

ADT chief executive officer Michael Ashcroft said approximately 7 million shares will be issued to cover the transaction.

"ASH is an excellent fit for ADT,'' Mr. Ashcroft said in a statement.

"Inclusive of ASH, ADT's total customer base in North America and Europe is now approximately 1.6 million.

"As ASH's operations are integrated into ADT's structure, we expect to benefit from the cost savings associated with combining business in our industry.

"In addition, we are continuing to pursue our strategy of expanding ADT's customer base by internal growth and through developing new channels of distribution.'' ADT, which has its operating headquarters in Boca Raton, Florida, also provides vehicle auction services and is in the midst of its own merger with Republic Waste Industries, part-owned by Bermuda resident Michael DeGroote.