ADT customers and shareholders woke up to a buyout offer, and the stock responded. Shares of the home security company jumped about 34% on Thursday, October 29, after ADT (ADT) agreed to be acquired by Thrive Holdings for $10 per share in cash, a 45.6% premium to its October 27 close.
The deal values ADT at roughly $7.6 billion in equity and $15.3 billion including debt. In the second quarter, ADT reported revenue of $1.3 billion, up 2%, and adjusted profit of 23 cents per share.
For ADT’s 6.1 million customers, the deal could provide greater financial flexibility for management to roll out more products and services, but raises privacy concerns.
For investors who watched the stock trade near $7 for much of the fall, it is a rare clean exit. But the story may not be over, given that ADT can still field competing bids until Nov. 28, and shares are trading below $10 as the market weighs the odds of a closing.
One of the best-known home security plays
ADT is one of the best-known names in American home security, selling alarm systems, professional monitoring, and smart-home products to millions of households.
It sells through its own sales force and through partners, including Walmart, where it recently launched its ADT Blu line. A favorite of income-minded retail investors, the stock has struggled this year.
Related: SoFi surge catches short sellers flat-footed after record 1.2 million member quarter
Shares closed at $6.88 on Oct. 26, putting the company’s market value near $5 billion, and Morgan Stanley recently lowered its price target to $7.25 from $7.75, maintaining an equal-weight rating. Prior to the deal, ADT shares paid a dividend yield of about 3%, according to Zacks.
ADT raised its 2026 outlook earlier in the year and had been scheduled to report third-quarter results before the open on Nov. 3.
ADT will go private in a $7.6 billion equity deal with Thrive Holdings.Smith Collection/Gado / Getty Images
ADT nabs $7.6 billion takeover
The all-cash deal pays $10 per ADT share and was unanimously approved by the board. It implies an equity value of about $7.6 billion and an enterprise value of $15.3 billion, which includes ADT’s debt.
Closing is expected in the first quarter of 2027. It needs stockholder approval and U.S. antitrust clearance. After closing, ADT will become privately held, and its shares will stop trading.
Related: 58-year-old logistics stock plunges 17.8% on insurance costs and EPS miss
The financing for Thrive’s acquisition is being provided by funds managed by affiliates of Apollo Global Management. Apollo Group formerly owned ADT via a $6.9 billion leveraged buyout (LBO) in 2016. Apollo Group relisted ADT shares in 2018 and sold the last of its remaining shares in May 2026 for $770 million.
A “go-shop” period lets ADT solicit competing proposals through Nov. 28, 2026, so a higher bid is possible, though not guaranteed. Shares were trading roughly 8% below the $10 offer midmorning after the deal news broke, which can suggest deal risk and the time value of waiting until early 2027 for the acquisition to close.
What ADT customers and investors should watch now
ADT reports third-quarter results before the open on Nov. 3, its first update since the deal.
After that, watch for rival bids before the Nov. 28 go-shop deadline, the shareholder vote, and antitrust review. The deal is expected to close in the first quarter of 2027.
ADT customers concerned about how the deal may impact privacy should know that Thrive says its data and privacy policies will remain unchanged and that no new data sharing will occur without customer permission.
“Protecting customers’ homes also means protecting their data. Thrive Holdings is committed to upholding the highest standards of privacy and cybersecurity to protect the information that customers entrust to ADT,” said Anuj Mehndiratta, Partner at Thrive Holdings.
More Stocks NewsCathie Wood buys $9.1 million of tumbling tech stockUnitedHealth is bouncing back, but a major risk remainsBoeing’s comeback hits another frustrating roadblockJim Cramer raises a red flag to stock market investors