Thrive Holdings to Acquire ADT in $7.6 Billion Cash Deal

what happened

Home-security provider ADT has accepted a takeover offer from Thrive Holdings, an investment vehicle created by the venture firm Thrive Capital. Dow Jones Newswires reports that the buyer will pay $10 per share in cash, valuing the Boca Raton, Florida company at $7.6 billion and at an enterprise value of $15.3 billion.

The offer carries a 35% premium to Wednesday's close of $7.41. The transaction is expected to close in the first quarter of 2027, and trading in ADT shares was halted early on Thursday. Josh Kushner, whose firm stands behind the buyer, has a brother, Jared Kushner, who is Donald Trump's son-in-law.

Update adds that ADT shares rose about 34% to $9.93 in early trading. Apollo Global Management has provided financing commitments for the deal. ADT also said it has a 30-day go-shop period in which it can seek a higher bid.

why it matters

For markets, the key points are the gap between the offer price and the current share price and the chance of a rival bid during the 30-day go-shop window. Apollo's financing commitments reduce the risk that the deal fails for lack of funds, but the final price for shareholders depends on the outcome of that window.

market impact

ADT shares: $10 cash offer supports the stock price

• ▲ADT shares pressure up — cash offer is 35% above the prior close, supporting the price

tags

instruments