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Apollo Global to Buy Security Services Company ADT for $7 Billion

Tuesday, 16 Feb 2016 08:08 AM


Private equity firm Apollo Global Management LLC has agreed to buy electronic security company ADT Corp. for $7 billion to strengthen its security services business in North America.

Shares of ADT, a maker of burglary alarm systems, wireless cameras and video surveillance for homes and businesses, rose 52 percent to $41 in premarket trading on Tuesday, but were below the cash offer price of $42.

After the transaction closes, ADT will be merged with Apollo's security services unit, Protection 1, in a deal valued at about $15 billion.

The combined company, to be headquartered in Boca Raton in Florida, will have proforma annual revenue of more than $4.2 billion. Protection 1 Chief Executive Timothy Whall will head the combined company.

The deal, expected to close by June, includes a "go-shop" period of 40 days, during which ADT can look for a better offer.

ADT, spun off from fire safety and security systems maker Tyco International Plc in 2012, had 166 million shares outstanding as of Dec. 31. Apollo bought Protection 1 in 2015.

The Wall Street Journal first reported the deal on Monday.

Barclays, Citigroup Global Markets Inc, Deutsche Bank, Royal Bank of Canada and PSP Investments Credit USA LLC are providing the financing for the deal.

BofA Merrill Lynch and Goldman Sachs are ADT's financial adviser for the transaction and Barclays, Citigroup Global Markets, Deutsche Bank and RBC Capital Markets LLC advised Protection 1.

© 2017 Thomson/Reuters. All rights reserved.

   
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Private equity firm Apollo Global Management LLC has agreed to buy electronic security company ADT Corp. for $7 billion to strengthen its security services business in North America.
adt, apollo global, home, security
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2016-08-16
Tuesday, 16 Feb 2016 08:08 AM
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