Thrive Holdings agrees to acquire ADT in all-cash transaction

✦ Meridian Analysis

Thrive Holdings, the permanent‑capital vehicle set up by Joshua Kushner’s Thrive Capital Management, has signed an agreement to acquire home‑security provider ADT for $7.6 billion in cash. The offer of $10 per share represents a premium of nearly 46 % to ADT’s closing price on 27 October and values the business at $15.3 billion on a debt‑inclusive basis. Financing for the transaction is being supplied by funds managed by affiliates of Apollo Global Management. Leveraging its permanent‑capital model, Thrive can hold ADT beyond the typical private‑equity holding period, while ADT’s shareholders receive an all‑cash exit. ADT’s management, led by CEO Jim DeVries, said Thrive’s capital and technology expertise would help accelerate innovation and improve the customer experience. What remains undisclosed are the precise terms of the financing package, including leverage ratios and interest rates, as well as the identities of any financial advisers and the expected timetable for regulatory clearances and closing.

The Meridian Weekly