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ADT
shares rose 52 percent to $40.88 in premarket trading on
Tuesday, just shy of the cash offer price of $42.
After the transaction closes, Apollo will merge ADT with its
home security company Protection 1 in a deal valued at about $15
billion.
The offer price represents a premium of about 56 percent to
ADT's Friday close.
The combined company, to be headquartered in Boca Raton in
Florida, will have proforma annual revenue of more than $4.2
billion. Apollo acquired Protection 1 in 2015.
ADT, spun off from fire safety and security systems maker Tyco
International Plc in 2012, had 166 million shares outstanding as
of Dec. 31.
Barclays, Citigroup Global Markets Inc, Deutsche Bank, Royal
Bank of Canada and PSP Investments Credit USA LLC are providing
the financing for the deal.
BofA Merrill Lynch and Goldman Sachs <GS.N> are ADT's financial
adviser for the transaction and Barclays, Citigroup Global
Markets, Deutsche Bank and RBC Capital Markets LLC advised
Protection 1.
Simpson Thacher & Bartlett LLP are ADT's legal adviser, while
Paul, Weiss, Rifkind, Wharton & Garrison LLP advised Protection
1 and Apollo.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Kirti Pandey)
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