Apollo Global buying ADT
A private equity firm with other security interests has agreed to purchase The ADT Corp. and then merge its operations with Protection 1. The acquisition by Apollo Global Management is expected to be completed by June 2016.
“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 headquarters of the company are expected to remain in Boca Raton, Fla., and the combined company will operate primarily under the ADT brand.
ADT provides monitored security, interactive home and business automation and related monitoring services in the United States and Canada. Protection 1 provides installation, maintenance, and monitoring of single-family home security systems, business security systems and multi-family security systems.
Timothy J. Whall, president and CEO of Protection 1, will be the CEO of the combined business following the closing of the transaction. He says Protection 1’s robust commercial presence will speed ADT’s expansion into the commercial sector.
The Board of Directors of ADT unanimously approved the transaction. It is subject to customary closing conditions, and includes a 40-day “go-shop” period, during which ADT and its board may solicit and evaluate other offers.
Media reports put the value of the deal at US$7 billion.