Apollo affiliates to sell 71 million ADT shares in secondary offering

Published 25/07/2025, 02:36
Apollo affiliates to sell 71 million ADT shares in secondary offering

BOCA RATON - ADT Inc. (NYSE:ADT), trading at $8.67 and showing strong momentum with a 27% gain year-to-date, announced Thursday that entities managed by affiliates of Apollo Global Management, Inc. plan to sell 71 million shares of the company’s common stock in a proposed secondary public offering. According to InvestingPro analysis, ADT appears undervalued based on its Fair Value estimates.

The underwriters will have a 30-day option to purchase up to an additional 10.65 million shares from the selling stockholders, according to a company press release.

ADT will not sell any shares or receive proceeds from the offering. The home security company has authorized the concurrent purchase of approximately 11 million shares as part of the secondary offering, which will exhaust the remaining capacity of its existing $500 million share repurchase program.

Barclays and Citigroup are serving as book-running managers for the proposed offering. The underwriters will not receive fees for shares being repurchased by the company.

The shares may be offered through various methods, including transactions on the New York Stock Exchange, over-the-counter markets, or through negotiated transactions at prices related to prevailing market rates.

A shelf registration statement and preliminary prospectus supplement for the offering have been filed with the Securities and Exchange Commission.

ADT provides security solutions for homes and small businesses through a network of smart home security professionals across the United States. The company generates nearly $5 billion in annual revenue and maintains healthy profit margins above 80%. Get detailed insights and exclusive analysis with a InvestingPro subscription, including access to comprehensive Pro Research Reports covering 1,400+ top stocks.

In other recent news, ADT Corporation reported a strong second-quarter performance with a 7% increase in revenue, reaching $1.3 billion. The company also raised its adjusted earnings per share (EPS) guidance for the year, demonstrating confidence in its strategic initiatives. These developments are significant for investors as they highlight the company’s growth trajectory and financial health. Despite these positive results, the market’s reaction remained neutral. The earnings report underscores ADT’s focus on executing its plans effectively. Investors may find the updated EPS guidance particularly noteworthy as it suggests potential for future profitability. These recent developments provide a glimpse into the company’s current financial position and future expectations.

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