The terms of the deal including the price have not yet been agreed and there is no certainty the talks will lead to a binding agreement, according to Visonic

Visonic founder and chairman Yaacov Kotlicki, who controls 70 percent of the company, has granted Tyco an option to buy all his shares. Tyco has a 60-day exclusivity agreement with Visonic to enable negotations to continue.

According to Reuters, in May, Tyco chief executive Ed Breen told investors the company was closing in on a $110 million acquisition of an unspecified target.

"It is only $110 million but it is technology that actually has revenue with it and that really fits in to one of our core platforms and will really give us a competitive advantage," he said.