Thrive Holdings Agrees to Buy ADT at $10 a Share in $15.3B Deal, Apollo Financing

ADT agreed on October 29 to be acquired by Thrive Holdings for $10.00 a share in cash, valuing the home-security company at about $7.6 billion in equity and $15.3 billion in enterprise value, according to the companies' announcement. The deal is signed, not closed. ADT expects it to complete in the first quarter of 2027.

The price

The $10 offer is a 45.6% premium to ADT's unaffected close of $6.87 on October 27 and a 52.1% premium to its 30-day volume-weighted average price, the release said. ADT's board approved it unanimously. ADT would become a private company.

Financing

Funds managed by affiliates of Apollo Global Management provided all of the financing commitments, the release said. ADT's 8-K filing lists three parts: an equity commitment, a preferred equity commitment from Apollo funds, and a debt commitment from Apollo funds. The deal has no financing condition.

Conditions and deal protections

• Approvals: closing requires a vote by ADT stockholders and US antitrust clearance, plus customary conditions.
• Go-shop: ADT may solicit rival offers until 11:59 p.m. New York time on November 28, 2026, with a possible 10-day extension for bidders who come forward in that window.
• Break fees: per the 8-K, ADT would owe $227 million if it walks away for a superior proposal, or $114 million if it does so during the go-shop. Thrive's side would owe a $473 million reverse termination fee in certain cases, such as failing to close when required.

The buyer

Thrive Holdings is a permanent-capital holding company formed last year by Joshua Kushner's Thrive Capital, according to Bloomberg Law. It owns more than 75 businesses across accounting, IT services and the built environment, and plans to make ADT the base of a smart-home security business. The release says ADT's data and privacy policies will not change, and no new data sharing will happen without customer permission. In the 8-K, the acquiring entities are Abode Parent, LLC and Abode Merger Sub, Inc.