Under a definitive merger agreement, Johnson Controls, Milwaukee, Wis., will combine with Tyco, Cork, Ireland, to create a leader in building products and technology, integrated solutions and energy storage. Both companies’ boards of directors have approved the deal.

Johnson Controls shareholders will own approximately 56 percent of the equity of the combined company and receive aggregate cash consideration of approximately $3.9 billion. Current Tyco shareholders will own approximately 44 percent of the equity of the combined company.  

Under the terms of the proposed transaction, the businesses of Johnson Controls and Tyco will be combined under Tyco International plc, which will be renamed Johnson Controls plc. The primary operational headquarters in North America for the combined company will be in Milwaukee.

The combined company brings together product, technology and service capabilities across controls, HVAC, power solutions and energy storage, fire and security to serve end markets such as industrial, large institutions, commercial buildings, retail/small business and residential.