Protection One to Acquire Lifeline Systems

Western Resources Inc.’s Protection One unit agreed to buy medical-alert company Lifeline Systems Inc. for $179 million in cash and stock in its first move into the health-monitoring business. Culver City-based Protection One, the second-largest monitored-security firm in the U.S., said it will pay a combined value of $29.74 a share for Lifeline. It said $14.50 will be in cash and $15.24 will be in shares in a new holding company, based on Protection One’s closing share price Friday. Cambridge, Mass.-based Lifeline alerts hospitals when its clients need assistance. Protection One provides home-security monitoring and other security services. Topeka, Kan.-based Western Resources, an electric utility company, owns 80% of Protection One’s stock. On Nasdaq, Protection One shares fell 94 cents to close at $10.63, and Lifeline Systems rose $3.13 to $25.75. Western Resources fell 13 cents to $40.88 on the NYSE.