ADT slides after Apollo's stake sale priced

ADT

03/03/2025 14:59

Updates with pricing information

** Shares of home security firm ADT Inc ADT.N down 5.9% at $7.71 early Mon after secondary offering priced

** Boca Raton, Florida-based firm announces 70 mln shares offloaded by entities managed by Apollo Global Management APO.N affiliates

** Offering priced at $7.70, according tothefly.com, a 6% discount to stock's close on Fri

** Also, ADT to concurrently purchase 20 mln of the offering's shares from the underwriters as part of its existing repurchase program

** Transactions reduce private equity giant Apollo's stake from ~43.7% to 36.1%, or ~289.2 mln shares

** With ~876.5 mln total shares outstanding, ADT has current market cap of ~$6.8 bln

** Barclays, Citigroup, Morgan Stanley, Goldman Sachs and BTIG are bookrunners for offering

** On Thurs, ADT shares hit 2-yr high after co posted Q4 beat, citing records for recurring monthly rev and customer retention, and unveiled $500 mln stock buyback

** With move on the session, stock up ~11% YTD

    ** ADT went public in 2018 IPO priced at $14, after Apollo
    bought
     the co in 2016 for ~$7 bln

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))