The leading security company ADT, is being merged with Protection 1 in a mega deal. The ADT brand, though, will remain, and the combined company will operate primarily under the ADT brand.
The ADT Corporation has announced that it has entered into a definitive agreement to be acquired by an affiliate of certain funds managed by affiliates of Apollo Global Management, LLC and co-investors and merged with a subsidiary of Prime Security Services Borrower, LLC, a leading full-service business and home security company in the United States also owned by the Apollo Funds, for $42.00 per share in cash. The purchase price represents a premium of approximately 56% over ADT’s closing share price on February 12, 2016 and, when combined with Protection 1, represents an aggregate transaction value of approximately $15 billion. The headquarters of the combined company will remain in Boca Raton, FL, and the combined company will operate primarily under the ADT brand.
“This transaction represents a highly attractive premium for ADT’s shareholders,” said Naren Gursahaney, President and CEO of ADT. “We’re proud to have strengthened the quality of our customer base, improved service and retention, and extended our leadership in innovative solutions such as our ADT Pulse platform and our new Security-as-a-Service offering, ADT Canopy. By combining Protection 1 with ADT, we will be better positioned to expand the breadth and depth of the services we offer to our customers throughout the United States and Canada.”
The Board of Directors of ADT unanimously approved the transaction. The acquisition of ADT is expected to be completed by June 2016.
