Thrive Holdings takes ADT private: US$15.3bn in all, US$7.6bn for the shares
ADT’s merger filings of 29 October and results of 3 November: the US0 price and 45.6% premium, the debt between equity and enterprise value, recurring revenue that is not growing, and the dates.
Thrive Holdings agreed on 29 October to buy ADT, which sells and monitors security systems for US homes and small businesses, for US$10.00 a share in cash. ADT puts the deal at about US$7.6bn of equity value and US$15.3bn of enterprise value. The price is 45.6% above ADT’s “unaffected” close of US$6.87 on 27 October and 52.1% above its 30-day volume-weighted average.1 The shares closed at US$7.41 on 28 October, the day before the announcement, and at US$9.90 on 4 November.8
US$15.3bn
enterprise value: the shares plus the debt, less cash
ADT, 29 Oct
US$7.6bn
equity value, at US$10.00 a share
ADT, 29 Oct
45.6%
premium to the unaffected close of US$6.87
ADT, 29 Oct
US$360m
recurring monthly revenue, against US$362m a year earlier
ADT, Q3 2026
01Enterprise value and equity value: the debt in between
Equity value is what the shareholders receive. Enterprise value adds what the business owes and subtracts its cash: it is the price of the whole company, whoever funded it. Here the two differ by US$7.7bn. On 30 September ADT owed US$7.85bn of debt principal (US$7.78bn as carried on the balance sheet) and held US$228m of cash.3 ADT has not published its own bridge between the two figures.
The buyer is Abode Parent, LLC. It has an equity commitment from one of its affiliates and preferred-equity and debt commitments from funds managed by affiliates of Apollo Global Management; the deal has no financing condition.2 Apollo is a familiar name to ADT: its funds sold their last 102 million or so ADT shares in May 2026, ADT bought back 29 million shares in that offering at US$7.25 each, and Apollo’s nominees left the board.3 ADT pays a US$227m break fee in specified cases, US$114m if it leaves for a better offer during the go-shop; the buyer owes US$473m if it fails to close when required.2
02What is being bought: recurring revenue that is not growing
ADT’s revenue rose 4% to US$1,349m in the quarter to 30 September, but the recurring part, monitoring and related services, fell 1% to US$1,084m. Installation and product revenue rose 32% to US$265m as more systems were sold outright.5 Recurring monthly revenue (RMR), the contracted monthly fees, ended at US$360m against US$362m, a fall the chief financial officer, Jeff Likosar, put mainly on the October 2025 sale of the multifamily business.4 Gross customer revenue attrition, the share of RMR lost to cancellations over twelve months net of dealer charge-backs and reinstatements, was 13.1%, against 13.0%; non-payment cancellations rose while voluntary ones fell.34
ADT withdrew its 2026 guidance, took no questions on the call, and does not intend to report on the go-shop unless it decides to or must.41
03Who Thrive Holdings is, what it says it will do, and the dates
Thrive Holdings calls itself a permanent capital holding company, with more than 75 businesses in accounting, IT services and the built environment, among them Current (accounting) and Shield (IT services); ADT “will form the foundation of Thrive Holdings’ smart home security business.”1 It “was launched by Thrive Capital, an investment firm with over $65 billion in assets under management,” ADT told its staff.6 Kareem Zaki, a partner, said: “We intend to build on that foundation by strengthening ADT’s technology and product capabilities, with the capital and patience to invest over decades.” Its engineers will work with ADT’s teams, and “no new data sharing will occur without customer permission.”1
ADT can take a better offer until 28 November; the sale is expected to close in early 2027
Dates set in ADT's merger agreement and filings, October 2026 to July 2027
Show tableHide table
| Date | Event | Detail |
|---|---|---|
| 27 Oct 2026 | Unaffected price | ADT closes at US$6.87, the base for the 45.6% premium |
| 29 Oct 2026 | Agreement signed | US$10.00 a share in cash |
| 3 Nov 2026 | Results | Guidance withdrawn; no questions taken |
| 28 Nov 2026 | Go-shop ends | 11:59pm New York time |
| 8 Dec 2026 | Extension ends | for bidders who came forward during the go-shop |
| 31 Mar 2027 | Expected close | first quarter of 2027, after the shareholder vote and US antitrust clearance |
| 29 Jul 2027 | Outside date | either side may walk away if not closed |
Source: ADT, deal release and Form 8-K (29 October 2026); Q3 2026 results (3 November 2026) · as of 5 November 2026 · the close is given as a quarter, not a date; 31 March 2027 marks its end
Closing needs ADT’s shareholders to approve and the US antitrust waiting period to end.2 What to watch: any rival bid before 28 November, and the proxy statement ADT intends to file, which it says will contain “important information about the proposed transaction”.1
Sources
- ADT, ADT to be Acquired by Thrive Holdings in $15.3 Billion Transaction (8-K, Exhibit 99.1) — 29 October 2026
- ADT, Form 8-K, Item 1.01: Agreement and Plan of Merger with Abode Parent, LLC — 29 October 2026
- ADT, quarterly report on Form 10-Q, quarter to 30 September 2026 — 3 November 2026
- ADT, third-quarter 2026 earnings call transcript (filed as DEFA14A) — 3 November 2026
- ADT, ADT Reports Third Quarter 2026 Results (8-K, Exhibit 99.1) — 3 November 2026
- ADT, employee FAQs on the Thrive Holdings transaction (filed as DEFA14A) — 29 October 2026
- ADT, Agreement and Plan of Merger, section 3.02 Capitalization (Exhibit 2.1, filed as DEFA14A) — 29 October 2026
- Nasdaq, ADT historical prices (closes, 27 October to 4 November 2026) — 4 November 2026
Disclosure. TechBag is a software reseller: it earns a margin when a reader buys through it, including from vendors named here. The analysis is TechBag’s own; no vendor paid for or saw this piece before publication. Facts are labelled reported, TechBag count or our view.
Keep reading
