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

For movies opening July 29, 2016

  OPENING THIS WEEK Kam's Kapsules Weekly Previews That Make Choosing a Film Fun by Kam Williams For movies opening July 29, 2016 BIG BUDGET FILMS Bad Moms (R for full frontal nudity, pervasive profanity, and drug and alcohol use) Female empowerment comedy about a trio of overstressed, burnt-out supermoms (Mila Kunis, Kathryn Hahn and Kristen Bell) in need of fun and freedom who embark on a self-indulgent binge of hedonistic partying. Cast includes Christina … [Read More its Good for You...]

Books

Legendary Civil Rights Icon Reflects upon the Past as Prologue

  Joan Trumpauer Mulholland The “She Stood for Freedom” Interview with Kam Williams Legendary Civil Rights Icon Reflects upon the Past as Prologue Joan Trumpauer Mulholland was a little girl in the 1950s. When she saw that black people were being treated differently from white people, she promised herself that she would do something to change that. As a teenager, she joined the Civil Rights Movement and protested the injustice she saw around her. During the 1960s, … [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

New Home Sales Jump in April

  New Home Sales Jump in April By Burt Carey Sales of new homes hit their highest rate since 2008 in April, according to the Commerce Department’s U.S. Census Bureau. April sales increased 16.6 percent over March figures, which correlates to a seasonally adjusted rate of 619,000 home sales projected for the year. The median price of those new homes was $321,000, the highest median price ever recorded. That’s up 9.7 percent from sales one year ago. The … [Read More its Good for You...]

Lifestyle

Carolina Skiff “Teams Up” with NASCAR’s #98 Cole Whitt!

  Carolina Skiff “Teams Up” with NASCAR’s #98 Cole Whitt!   Cole Whitt is one of the toughest, most skilled drivers in the NASCAR realm, so it comes as no surprise that the company creating the most versatile and durable boats on the market today has become a proud Cole Whitt sponsor!   “Team Skiff” brings a thirty-year glowing reputation with them for being one of the nation’s top fiberglass boat builders. The #1 manufacturer in retail sales of fiberglass … [Read More it Good for You...]

Outdoors

Carolina Skiff “Teams Up” with NASCAR’s #98 Cole Whitt!

  Carolina Skiff “Teams Up” with NASCAR’s #98 Cole Whitt!   Cole Whitt is one of the toughest, most skilled drivers in the NASCAR realm, so it comes as no surprise that the company creating the most versatile and durable boats on the market today has become a proud Cole Whitt sponsor!   “Team Skiff” brings a thirty-year glowing reputation with them for being one of the nation’s top fiberglass boat builders. The #1 manufacturer in retail sales of fiberglass … [Read More its Good for You...]

Sports

Tiger Woods Opts Out of U.S. Open, Quicken Loans

  Tiger Woods Opts Out of U.S. Open, Quicken Loans By Burt Carey Tiger Woods isn’t ready to stage a comeback just yet. The 14-time major champion sent messages via Twitter and his website Tuesday that he would not be competing at either the U.S. Open at Oakmont next week or the PGA Tour’s Quicken Loans tournament the following week. "While I continue to work hard on getting healthy, I am not physically ready to play in this year's U.S. Open and the Quicken … [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

The Ultimate Traveler’s Bucket List

  The Ultimate Traveler’s Bucket List by Amy Lignor   For many people, the organization UNESCO is one they rely on to see the most majestic and amazing sites ever to be located in recorded history. Well, this organization that is an official “protector” of ancient realms has now presented its newest list of World Heritage Sites that should positively gain spots on all Journeymen’s (or women’s) ultimate bucket lists!   These global locations fall into … [Read More its Good for You...]

Google+