If ADT's stock price raising about 50% is any indication... it was AWESOME for ADT!!! Check out video from USA Today.
ADT Press Release: February 16, 2016
It's exciting news that ADT was purchased by Apollo Global Management. Apollo buying ADT shows how valuable ADT is as the leader of the security and home automation business. For the time being it will be business as usual at ADT but by mid year of 2016 ADT will merge with Protection One that is owned by Apollo. This merger will continue to add to ADT being the superior choice of homeowners and businesses for monitored security, video surveillance and home automation.
It seems this merger was made in heaven, as ADT is dominate in the residential and small business security monitoring and Protection One has been a leader in providing security for large commercial and national accounts. When ADT split from Tyco several years ago, there was a non compete clause in the large commercial space. ADT's non compete clause in the large commercial space with Tyco is over, so the merger could not come at a better time. Once the merger is complete, both companies will be called ADT Security and the ADT brand will continue to be America's number one security company for over 140 years and running.
In the News... Apollo Global Management is buying ADT for nearly $7 Billion
USA Today
Private equity firm Apollo Global Management has acquired ADT (ADT) for nearly $7 billion and will merge it with another home security company, Protection 1.
Apollo, which owns Protection 1 parent Prime Security Services Borrower LLC will pay $42 per share of ADT, a premium of nearly 56% over ADT's closing share price Friday of $26.87. The stock rose about 50% on news of the deal.
The combined company will retain the name ADT and remain headquartered in Boca Raton, Fla., and have annual revenue of more than $4.2 billion. Read more...
The New York Times
The ADT Corporation, which provides home and business security systems for 6.5 million customers, is being acquired by the private equity firm Apollo Global Management for $6.9 billion in the largest leveraged buyout so far this year.
Apollo intends to merge ADT with Protection 1 and ASG Security, two other security companies that the firm agreed to purchase last May, although they will all operate under the ADT name. The combined company would create pro forma annual revenue surpassing $4.2 billion.
ADT traces its roots to Edward A. Calahan, the man who invented the stock ticker in 1867. When Mr. Calahan, the president of Calahan’s Gold and Stock Telegraph Company, found a burglar in his home, he created a telegraph-based alert system. After more than a century of acquisitions and antitrust rulings, ADT was acquired by Tyco in 1997. Tyco decided to be broken up into three units in 2012, making ADT once again an independent company. Read More...
ABC News
Home security services company ADT has agreed to be purchased by affiliates of Apollo Global Management for about $6.94 billion.
ADT Corp.'s stock surged almost 50 percent in afternoon trading Tuesday.
ADT shareholders will receive $42 per share. That's a 56 percent increase from Friday's closing price of $26.87.
The companies said that ADT will be merged with a subsidiary of Prime Security Services Borrower LLC, which is also owned by Apollo.
The combined business will operate primarily under the ADT brand and be based in Boca Raton, Florida.
ADT has a 40-day period in which it can actively seek out alternative proposals.
Its board has approved the acquisition, which is targeted to close by June. It still needs ADT shareholder approval. Read More...
What are they saying about the ADT merger with Protection One in the security industry?
Security Systems News
In addition to the premium for ADT shareholders, combining ADT with Protection 1 should bring large cost synergies, Alper Cetingok, managing director of Raymond James, told Security Systems News. Cetingok indicated that “potential sources of cost synergy for the combined entity include elimination of certain aspects of ADT’s corporate overhead, such as public company costs, and efficiencies gained through the combination of the respective branch networks.”
The combined company is expected to generate $318 million in RMR and have more than $4.2 billion in annual revenues. Cetingok called the task of combining Protection 1 and ADT “a bigger lift than anyone has ever done before” but noted that Tim Whall “has proven time and time again his ability to do this. … Creating operational efficiencies is Tim and Protection 1’s core competency. I wouldn’t bet against them.”
In a prepared statement, Tim Whall, President and CEO of Protection 1, said: “Protection 1’s robust commercial presence will speed ADT’s expansion into the commercial sector supported by increasing commercial sales and technical skills across a well matched national footprint.”
The Board of Directors of ADT unanimously approved the transaction. The deal is expected to be completed in June. It is subject to applicable antitrust waiting periods in the United States and Canada, ADT stockholder approval and other customary closing conditions. Read More...
From all indications, I feel Apollo buying ADT and the merger with Protection One will be beneficial for our customers. it appears that Tim Whall who will become ADT's CEO is exceptionally good at the operational side of the business and ensuring a superior customer experience. The reduced cost of operational expenses once the merger is complete will also help to raise profitability. As a combined company, we will also be able to provide security services for companies of all sizes and continue to lead the industry in providing security monitoring and home automation in the residential market.
For us here at California Security Pro, our main concern is to be passionate about our customers and offer the finest customer service in the security industry. We will continue to offer superior in home consultations to help our customers customize the best security solution for their home and business. Our security technicians will continue to be among the finest in the security industry and ensure our customers have a enjoyable installation experience. We want our customers to have the peace of mind knowing their home and business is protected and we want them to be happy:)
