Deal details
Thrive Holdings will acquire home security provider ADT for $10 a share in cash, a level that sits nearly 46% above the stock's Oct. 27 closing price. On that price, the agreement values ADT at $7.6 billion on equity and $15.3 billion including debt. It also marks one of the biggest moves to date by a Thrive Capital Management offshoot tied to Joshua Kushner's venture firm. Deal financing was provided by funds managed by Apollo Global Management, Inc. affiliates.
Who Thrive is
Launched last year, Thrive Holdings builds, runs, and invests in businesses aiming to apply artificial intelligence to service providers such as accounting firms and other traditionally analog operators. It is structured as a permanent capital vehicle, which lets it own and operate companies for longer than the typical private equity fund cycle.
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What ADT says and why it matters
More than 150 years after its founding, ADT said the partnership will help it roll out new offerings. "With Thrive Holdings' long-term capital and technology expertise, ADT will gain new opportunities to accelerate innovation, enhance the customer experience and bring greater peace of mind to even more homes and businesses," said Jim DeVries, ADT's chief executive officer.
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