ADT Inc. has entered into a definitive agreement to be acquired by Thrive Holdings in an all-cash transaction.
The transaction values ADT at approximately $7.6bn in equity value and $15.3bn in enterprise value.
Thrive Holdings is a permanent capital holding company focused on investing in established businesses and enhancing their capabilities through technology.
The acquisition will combine ADT’s more than 150 years of security experience, nationwide servicenetwork and customer relationships with Thrive Holdings’ long-term capital and engineering capabilities.
ADT CEO Jim DeVries said the transaction recognizes the value built by ADT’s more than 12,000employees and provides an attractive cash premium to shareholders. He highlighted the potential toaccelerate innovation, enhance customer experience and develop new products and services.
Thrive Holdings Partner Kareem Zaki said the firm intends to build on ADT’s legacy by strengthening its technology and product capabilities, with the capital and long-term investment horizon to supportinnovation and improve customer service.
ADT will form the foundation of Thrive Holdings’ smart home security business. Thrive currently hasmore than 75 businesses across accounting, IT services and the built environment.
Thrive Holdings intends to support ADT’s long-term growth through continued investment in its people, products and services, with engineering teams working alongside ADT professionals to identify opportunities to enhance technology and customer support.
Thrive Holdings Partner Anuj Mehndiratta reaffirmed the firm’s commitment to maintaining high standards of privacy and cybersecurity.
Funds managed by affiliates of Apollo Global Management, Inc. have provided the transaction’s financing commitments.
Until closing, ADT will continue operating independently. Upon completion, it will become privatelyheld and delist from the New York Stock Exchange.
