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.

 

Entertainment

Career of Boxing Legend Roberto Duran Revisited in Revisionist Tale of Redemption

  Hands of Stone Film Review by Kam Williams Career of Boxing Legend Roberto Duran Revisited in Revisionist Tale of Redemption  Roberto Duran (Edgar Ramirez) is considered by most fight experts to be, pound-for-pound, one of the greatest boxers of all time. The intimidating icon earned his nickname "Hands of Stone" by virtue of his prodigious displays of punching power. Born in Panama in 1951, Roberto exhibited promise from the moment he first entered the ring at … [Read More its Good for You...]

Books

The “City of Angels” is a Fact for Our Wild Friends

  The “City of Angels” is a Fact for Our Wild Friends by Amy Lignor   It’s called the City of Angels. The title makes some laugh out loud when they think of the violence, driving, and other negatives that are focused upon by the media when speaking about Los Angeles. But a new book has just hit the market that opens up all new doors, proving that where both Los Angeles and the entirety of California are concerned, those angels actually do exist. Author Beth … [Read More its Good for You...]

Art

ART EXHIBITION: 150 Years After The Civil War

  Cynthia Groya 150 Years After The Civil War: A Contemporary Perspective January 10 - March 6, 2016 Artist's Reception: Sunday, January 24, 3:00 - 5:00 pm Nassau Club 6 Mercer Street  Princeton, NJ 08540 The ideas reflected in Groya's paintings express a conversation about struggle for equal rights in our culture, in our time. The origin of this struggle can be traced to The Civil War in our country, which ended 150 years ago. The … [Read More its Good for You...]

Real Estate

Castles in America

  Castles in America by Amy Lignor   Robin Leach and his “Lifestyles of the Rich and Famous” taught us all long ago that we absolutely love to sit and view ridiculous luxury (usually owned by people who inherited all of it and didn’t work a day in their lives). See that? We had to complain about something as we were beguiled by the amount of money people would send to own or create the “best of the best.” Even though some things were referred to as the “gaudiest of … [Read More its Good for You...]

Lifestyle

Rappin’ with “The Dude”

    Jeff Bridges The “Hell or High Water” Interview with Kam Williams Rappin' with "The Dude" One of Hollywood’s most successful actors and a six-time Academy Award-nominee, Jeff Bridges performance in Crazy Heart as Bad Blake, the down-on-his-luck, alcoholic country music singer at the center of the drama, deservedly garnered the iconic performer an Oscar in the Best Lead Actor category. The performance also earned him a  Golden Globe, Screen Actors Guild and … [Read More it Good for You...]

Outdoors

280CC Adventure by Tidewater is Turning Heads in the Bluewater World

  280CC Adventure by Tidewater is Turning Heads in the Bluewater World by Ted Lund More and more fishermen are learning that center consoles can really excel in offshore bluewater fishing, and with boats like the 280CC Adventure taking to the marketplace, that's really no surprise.   This is a true bluewater center console fishing machine that can get anglers to the grounds and back in comfort, even when the weather turns snotty — like it does in late … [Read More its Good for You...]

Sports

Get Ready for Football!

  Get Ready for Football! by Amy Lignor   There is a time every year where suddenly the sports news gets far more interesting. No. I’m not talking about the Olympics. Thus far the only thing anyone wants to hear about where Rio is concerned is a virus. What I speak of is that familiar smell of pigskin wafting in the air. The time when the (no offense) more boring sports exit the headlines to make way for the one sport that boasts more avid, loud, and loyal … [Read More its Good for You...]

Business

Calling All Entrepreneurs: Creating “Buzz” For Your Brands

  Calling All Entrepreneurs: Creating “Buzz” For Your Brands by Amy Lignor   This is 2016. This is an election year. “Shark Tank” is a top show on television. And more than ever people want to be entrepreneurs; be in business for themselves and make some money. But even after all this time in the computer-age, entrepreneurs are finding it difficult to see the ‘niches’ they can get into to build their brand so that all consumers know who they are and why their … [Read More its Good for You...]

Travel

Visit the Most Beautiful Nature Locales in the Country

  Visit the Most Beautiful Nature Locales in the Country by Amy Lignor   Wildlife habitat gardens are being created in a variety of locations, in a variety of sizes. There are even those that are funded by some large names and organizations, who are calling out to tourists across the globe to come visit and see what great things are being done to sustain and increase the wildlife community.   These are places that the National Wildlife Federation (NWF) has … [Read More its Good for You...]

Google+