Boca Raton’s ADT agrees to $7.6 billion cash sale to Thrive Holdings
The proposed deal values the security company at $15.3 billion on an enterprise basis and remains subject to shareholder and antitrust approvals.
Key Takeaways
- •ADT shareholders would receive $10 per share in cash if the deal closes.
- •The company may solicit competing proposals through Nov. 28, with a possible extension for qualifying bidders.
- •ADT expects the transaction to close in the first quarter of 2027, subject to approvals.
Boca Raton-based ADT has agreed to be acquired by Thrive Holdings in an all-cash deal valuing the security company’s equity at about $7.6 billion. The transaction remains subject to shareholder and U.S. antitrust approvals.
ADT shareholders would receive $10 per share if the deal closes, the companies said in their Oct. 29 announcement. They put the transaction’s enterprise value at approximately $15.3 billion, a broader measure than the value assigned to shareholders’ equity.
The agreement concerns a major company based in Palm Beach County. ADT provides security and smart-home services to residential and small-business customers; the announcement does not establish a headquarters move or a change in local employment.
The board unanimously approved the agreement, according to ADT. The company said the $10 price represents a 45.6% premium to its unaffected closing share price of $6.87 on Oct. 27.
What happens before closing
ADT expects the deal to close in the first quarter of 2027, subject to customary conditions. Those include approval by its shareholders and U.S. antitrust clearance. The company said the transaction does not have a financing condition; funds managed by affiliates of Apollo Global Management have provided financing commitments.
The agreement also includes a go-shop period during which ADT and its financial advisers can seek proposals from other parties. That period runs until 11:59 p.m. New York time on Nov. 28 and can be extended by 10 days for certain parties that submit proposals during the initial window.
ADT said it can terminate the merger agreement to enter a superior proposal, subject to the agreement’s terms. A competing offer is not assured. Until the transaction closes, ADT will continue to operate independently.
If completed, the transaction would take ADT private and its common stock would stop trading on the New York Stock Exchange. Thrive describes itself as a permanent-capital owner of businesses and says ADT would form the foundation of its smart-home security business.
What customers have been told
The companies said ADT’s data protection and privacy policies will remain unchanged and that there will be no new data sharing without customer permission. That is a statement of the companies’ commitment, rather than an independent assessment of their practices.
ADT is scheduled to release third-quarter results on Nov. 3 before the market opens. It plans to summarize the results on a 10 a.m. Eastern conference call and said it will not take questions on that call in light of the announced transaction.
