APi Group Corporation

Good morning, ladies and gentlemen, and welcome to API Group's second quarter 2021 financial results conference call. All participants are now in a listen-only mode until the question and answer session. Please note this call is being recorded. I will be standing by should you need any assistance. I will now turn the call over to Olivia Walton, Vice President of Investor Relations at API Group. Please go ahead.

Thank you. Thank you. Good morning, everyone, and thank you for joining our second quarter 2021 earnings conference call. Joining me on the call today are Russ Becker, our president and CEO, Sir Martin Franklin and Jim Lilly, our board co-chairs, and Tom Lydon, our chief financial officer. Before we begin, I'd like to remind you that certain statements in the company's earnings press release announcement and on this call are forward-looking statements, which are based on expectations, intentions, and projections regarding the company's future performance, anticipated events or trends, and other matters that are not historical facts. These statements are not a guarantee of future performance and are subject to known and unknown risks, uncertainties, and other factors that could cause actual results from those or implied by such forward-looking statements. In our press release and filings with the SEC, We detail material risks that may cause our future results to differ from our expectations. Our statements are as of today, August 11th, and we have no obligation to update any forward-looking statements we may make. As a reminder, we have posted a presentation detailing our second quarter financial performance on the Investor Relations page of our website. Our comments today will help us identify financial measures and other key operating metrics. The reconciliation of and other information regarding these items can be found in our press release and our presentation. Before turning the call over to Martin, I'd like to thank everyone that joined our conference call on July 27th, announcing our agreed acquisition of the Chubb Fire and Security business from Carrier Global Corporation. A replay of the webcast is available, along with the presentation slides, on the Investor Relations page of our website. It is now my pleasure to turn the call over to Martin.

Thank you, Olivia. This is a very exciting time for API. On July 27th, we announced an agreement to acquire the Chubb Fire and Security business from Carrier Global Corporation. The transaction value is $3.1 billion, which is comprised of $2.9 billion in cash and approximately $200 million of assumed liabilities and other adjustments. The acquisition of Chubb, which we anticipate to close around year end, will transform API into the world's leading life safety services provider. Chubb operates in 17 countries, serves over 1.5 million customer sites, and has leading market positions in Australia, Canada, France, Hong Kong, Netherlands, and the UK, which comprise approximately 90% of its revenue. Chubb is operated as a non-core asset. It is a leading service company long buried inside manufacturing businesses from United Technologies to Carrier. We are the perfect partner for Chuck. We perform many of the same services for the same types of customers in complementary geographies. Our combined global reach as the world leader in life safety services will position us as the logical one-stop shopping choice for multinational clients. With 26,000 combined skilled team members, We believe we will be able to bring the best quality of service and attract, train, and retain the best talent. We believe the transaction will be highly accretive with compelling synergies, that it will complement revenue growth through cross-selling certain products and services, and that the opportunity for margin expansion is meaningful. We're extremely excited about the value creation opportunity the newly enlarged company represents. creating the worldwide leader in life safety and security while concentrating the vast majority of the business on recurring revenue, mandatorily required services. It's a thesis we had hoped to follow when we made our original investment in API. We have great confidence in the business and the direction we're going. And with that, I'll hand the call over to Russ.