ADT Acquired by Apollo Global Management

Apollo Global Management is set to acquire ADT Corporation for $6.9 Billion.

The ADT Corporation (NYSE: ADT) announced that the company will be acquired by Apollo Global Management, LLC (NYSE: APO), expecting the acquisition to be completed by this summer pending approvals. ADT’s board unanimously agreed to accept Apollo’s offer for $42.00 per share, a 56% premium on ADT’s closing share price on February 12th – making the ~$7 billion deal a big win for shareholders.

ADT will be combined with Protection 1, which Apollo acquired last year along with Maryland-based ASG Security. The new combined company will remain in Boca Raton, FL and will primarily operate under the ADT brand name under the leadership of current Protection 1 President and CEO, Timothy J. Whall.

What Does Apollo’s Acquisition of ADT Mean?

Is Apollo looking to challenge Tyco, former owner of ADT, and giant in commercial security solutions? That would make sense considering Protection1’s established success in the commercial space and the strength of the ADT brand.

We’re interested to see what this new entity will mean to the fragmented home security and automation marketplace. Will this merger provide the ADT brand with the resources needed to re-emerge as a technology innovator in home security? Securing this position would require innovation, speed to market and a customer-centric focus on usability, functionality, form and service.

Let’s hope the new company builds on the expansion of the workforce to reduce installation times and increases momentum of ADT’s security as a service solution, ADT Canopy.

As the IoT (Internet of Things) moves more and more to the fore of homeowners’ thoughts of a smarter home, they’re looking for a system or platform to seamlessly merge application and devices into an intuitive ecosystem of home security and automation. Similar to Google and Apple’s acquisition of smaller innovators in the IoT and smart home space, will ADT, in its new form, look to innovate through acquisition? We’ll have to wait and see. We look forward to what comes next for this industry veteran and will be sure to weigh in as the future unfolds.

 

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