Apollo Global Management has entered into a definitive agreement to acquire security services provider ADT (NYSE: ADT) for roughly $6.9 billion, the largest buyout announced this year. The firm will pay $42 per share in cash, a 56% premium over the company’s closing share price Friday. Apollo will merge ADT with current portfolio company Protection 1, representing an aggregate transaction value of about $15 billion; the combined security business will operate under the ADT brand.
It’s already been a busy month for Apollo. The ADT deal comes one week after the investing behemoth teamed with The Vistria Group and Najafi Companies on an announced $1.1 billion buyout of Apollo Education Group (NASDAQ: APOL), which operates the for-profit University of Phoenix.
The ADT deal is expected to close by June. While the company's Board has unanimously approved the transaction, the merger agreement includes a 40-day "go-shop" period in which the Board may still solicit and negotiate alternative offers. ADT's stock closed Tuesday at $39.64, up 47.5%. The company has over 6.5 million customers in the U.S. and Canada, along with 17,000 employees.
PitchBook users can click here to access all of our data on public-to-private buyouts completed in the U.S. and Europe since 2008. Not a client but interested in the data? Contact us today.