Google+

Home Security Company ADT Sold to Apollo Global Management for $6.9 Billion

 

Home Security Company ADT Sold to Apollo Global Management for $6.9 Billion

By Burt Carey

Following three years of falling customer retention and stock prices, home security and alarm manufacturer ADT announced plans for to be purchased in a $6.9 billion buyout by the private equity firm Apollo Global Management.

ADT sold to Apollo Global Management, home security, alarm manufacturer, buyout, enhanced customer serviceApollo agreed to pay $42 per share for ADT, a 56 percent increase from the company’s Friday closing price of $26.87. ADT’s stock shot up 48 percent to $38.64 by Tuesday’s stock market closing, the day the announcement was made. The company has a 40-day window to entertainment other business offers before the deal becomes final.

Apollo plans to merge ADT with its in-house security company, Prime Security Services Borrower LLC, which operates Protection 1. It will operate the merged companies using the ADT brand under Timothy Whall, the current president and CEO of Protection 1. Its headquarters will be located in Boca Raton, Florida. The company expects annual revenues to be about $4.2 billion.

ADT’s stock had sunk 30 percent over the past year, and its latest quarterly sales announcement missed forecasts amid increasing competition from such companies as Vivint, Honeywell, ASG Security, Slomin’s and Monitronics. Time Warner, Comcast, AT&T and Alphabet (Google’s parent corporation) have also entered the home security market.

Industrial giant Tyco spun ADT off in 2012 as an independent publicly traded company, but its market leader position has continued to slip ever since. Tyco, which was recently bought by Johnson Controls, paid $5.6 billion for ADT in 1997.

ADT’s board approved the transaction, which Apollo expects to close by June. The deal is based on about 165.3 million shares outstanding, and must be approved by ADT shareholders.

Apollo believes removing ADT from the pressures of quarterly earnings will help the business focus on attracting new customers and retaining current customers.

Industry analysts say cable and phone carriers such as AT&T and Comcast, which have been adding about 1 million security customers per year, could step up to bid for ADT to take advantage of its customer base and product lines.

“The combined company will be a market leader with a powerful brand and scale resulting in an enhanced overall customer experience,” Whall said.

Just last week Apollo announced that it and other investors had acquired the Apollo Education Group, parent corporation of the University of Phoenix, for $1.1 billion, and that it plans to privatize the company.

 

Source: Baret News

 

Entertainment

Partisan Polemic Revisits Mike Brown Shooting in Ferguson, Missouri

  Whose Streets? Film Review by Kam Williams Partisan Polemic Revisits Mike Brown Shooting in Ferguson, Missouri On August 9, 2014, Mike Brown was shot a half-dozen times by police officer Darren Wilson on the streets of Ferguson, Missouri, a predominantly-black suburb of St. Louis. Because several eyewitnesses said the 18 year-old had his … [Read More its Good for You...]

Books

Book of Black Heroes

  Book of Black Heroes Political Leaders Past and Present by Gil L. Robertson, IV Foreword by Myrlie Evers-Williams Just Us Books Paperback, $12.95 80 pages ISBN: 978-1-933491-21-9 Book Review by Kam Williams “The first African-American political leaders began to serve following the Civil War...Known as Reconstruction, this period … [Read More its Good For You...]

Art

The Day After the Day Of

  The Day After the Day Of by Paul Ilechko   The sky sheds its tears. This morning is the morning of the day after. The day of mourning, the day after the day of.  I beseech the sky to shed tears in order to wash away the tears on my face.   This is the first day of the time after. This is the beginning of a new time, the … [Read More its Good for You...]

Real Estate

Real Estate: Refinancing Rates on the Rise in 2017

  Real Estate: Refinancing Rates on the Rise in 2017 by Amy Lignor   The term ‘meteoric rise’ usually applies to something fun. Think: A Hollywood actor who has been ‘discovered.’) Unfortunately, when it comes to this article, ‘meteoric rise’ is something that will not bring a smile to one’s face. To put it simply, if you wish to refinance … [Read More its Good for You...]

Lifestyle

Girls Trip! Head to South Louisiana for Food, Fishing, and Culture

  Girls Trip! Head to South Louisiana for Food, Fishing, and Culture By Craig Lamb Ah, the New Orleans French Quarter. The sound of jazz coming from Preservation Hall. The taste of fresh beignets and café au lait at Café du Monde. Art galleries and shopping. French, Creole and Cajun cultures. It all has the makings of a girl’s getaway … [Read More its Good for You...]

Outdoors

Rig your Carolina Skiff for Waterfowl Hunting

  Rig your Carolina Skiff for Waterfowl Hunting By Craig Lamb Versatility is one of the benefits of owning a Carolina Skiff. Some models are known as the pickup truck of skiffs. Others are three-in-one setups for fishing, utility work, and family cruising. All the above activities are part of life in skiff country. That is the miles of … [Read More its Good for You...]

Sports

College Football Arriving Soon!

  College Football Arriving Soon! by Amy Lignor   Ask any college football fan and they will tell you that it seems like an eternity waiting for the season to begin. But, have no fear, the kick-off to the college season is almost here, with Colorado State and Oregon State hitting the field on Saturday, August 26th at 2:30 p.m. ET. On … [Read More its Good for You...]

Business

Book of Black Heroes

  Book of Black Heroes Political Leaders Past and Present by Gil L. Robertson, IV Foreword by Myrlie Evers-Williams Just Us Books Paperback, $12.95 80 pages ISBN: 978-1-933491-21-9 Book Review by Kam Williams “The first African-American political leaders began to serve following the Civil War...Known as Reconstruction, this period … [Read More its Good for You...]

Travel

Going Back in Time on the Ultimate Steamboat Vacation

  Going Back in Time on the Ultimate Steamboat Vacation by Amy Lignor   Many people love taking a cruise. But it is the river cruise on that glorious steamboat that not only offers all the benefits a big ocean liner offers, but also creates a more personalized, intimate vacation experience. It is a unique recipe: being able to witness … [Read More its Good for You...]