Thrive Holdings, the permanent capital vehicle established by Joshua Kushner's Thrive Capital, has committed to acquiring ADT at $10 per share in cash. The transaction values the home security systems provider at approximately $7.6bn in equity value, with enterprise value reaching $15.3bn. Apollo Global Management, which previously owned ADT before taking it private in 2016 and returning it to public markets in 2018, is supplying all financing for the acquisition.

The offer represents a 45.6% premium over ADT's closing price of $6.87 on 27 October, as announced jointly on Thursday. ADT's board of directors unanimously approved the transaction, and the stock surged 34% following the announcement. Jim DeVries, ADT's chairman and chief executive, stated: "ADT is pleased to enter into this transaction, which recognizes the value built by our more than 12,000 employees and delivers an attractive cash premium to our stockholders."

Timeline and regulatory hurdles

The acquisition requires approval from ADT shareholders and US antitrust authorities before proceeding. Both companies anticipate closing during the first quarter of 2027. ADT retains the right to solicit competing proposals through 28 November, with a potential 10-day extension available for certain bidders. Upon completion of the sale, ADT shares will cease trading.

Thrive's expansion into smart home security

Thrive Capital established Thrive Holdings in the previous year as a permanent capital investment structure, enabling longer-term ownership compared to conventional private equity models. The holding company currently operates more than 75 businesses spanning accounting, IT services and the built environment sectors. ADT will serve as the cornerstone of Thrive Holdings' smart home security division.

OpenAI functions as both a partner and investor in Thrive Holdings, furnishing AI models and engineering talent to portfolio companies. Thrive Capital has additionally disclosed a $215m stake in Amazon. Joshua Kushner is the sibling of Jared Kushner, who serves as the son-in-law of President Donald Trump.

Thrive indicated through a blog post that emerging technology could reduce false alarm incidents and enhance alert quality. The technology could also enable earlier detection of equipment failures. The companies have not yet unveiled specific new products or features.

Data privacy assurances

Both organizations have committed that ADT's existing data and privacy policies will remain unchanged following the acquisition. The companies pledged that no additional data sharing arrangements will occur without explicit customer consent. Anuj Mehndiratta, a partner at Thrive Holdings, remarked: "Protecting customers' homes also means protecting their data."

ADT technicians currently sell and install Google Nest devices alongside Apple's recently launched smart home product line. Apple introduced its HomeView hub, priced at $299, this month. Amazon integrated a camera into its new Echo Studio model released this week.

ADT will release third-quarter financial results on 3 November and will not accept questions during the earnings call.

Source: The Next Web