PE firm Apollo Global close to buying home security systems company ADT Corp
16 February 2016
US private-equity firm Apollo Global Management is close to finalising a deal to buy home security systems company ADT Corp and merge it with another similar company that it already owns, The Wall Street Journal yesterday reported, citing people familiar with the matter.
The report said that the transaction value could not be immediately learned, but ADT currently has a market cap of $4.4 billion.
Apollo is planning to merge ADT with its Protection 1 company, which it acquired in 2015 for a reported $1.5 billion and later merged it with ASG Security.
Tyco International had acquired ADT in the late 1990s for $5.4 billion and spun it off in 2012 as part of the diversified giant's plan to split its business into three independent publicly traded companies (See: Tyco International to split into three public firms)
ADT, based in Florida, is a leading provider of security and fire alarm systems in North America, serving more than 6.5 million residential homes and small businesses.
It designs, sells, installs, monitors and maintains these systems, and provides video, health, and interactive services to the home. The business has annual revenue of around $3.6 billion.
It has more than 200 branch locations and 6 monitoring centres across the US and Canada.