adt announces board changes as it transitions from "controlled company" status

ADT Inc. (NYSE:ADT), a provider of security and automation solutions for homes and businesses in the United States and Canada, with a market capitalization of $7.35 billion, announced the retirement of two board members in a recent SEC filing. William M. Lewis (JO:LEWJ), Jr. and Lee J. Solomon, both of whom were appointed by Apollo Global Management (NYSE:APO), stepped down from their positions on the Board of Directors on February 28, 2025. According to InvestingPro analysis, ADT currently shows signs of being undervalued, with a "Good" overall financial health rating.

The departures of Lewis, a Class II director, and Solomon, a Class I director, are linked to ADT’s change in status as a "controlled company" under the rules of the New York Stock Exchange (NYSE). This shift occurred on March 19, 2024, when Apollo’s ownership stake decreased, prompting the requirement for a majority of independent directors on the Board within the following 12 months.

ADT’s transition away from being a controlled company reflects a significant change in its corporate governance, as it moves towards a Board structure with a greater number of independent directors. This realignment is in compliance with NYSE regulations and is not due to any disagreements between the retiring members and the company or its operations, policies, or practices.

The company’s filing did not indicate any immediate replacements for the departing directors. The news comes as ADT continues to navigate the competitive landscape of security services, facing challenges and opportunities in a rapidly evolving market.

Investors and industry watchers will likely monitor how these changes to the Board will influence ADT’s strategic direction and governance practices moving forward. The information reported is based on ADT Inc.’s filing with the Securities and Exchange Commission. For deeper insights into ADT’s financial health, valuation metrics, and growth prospects, investors can access the comprehensive Pro Research Report available exclusively on InvestingPro.

In other recent news, ADT Corporation reported a strong financial performance for the fiscal year 2024, with a 5% increase in revenue, reaching $4.9 billion. The company also saw a substantial 25% rise in adjusted net income, totaling $685 million. These results were bolstered by new product features and strategic partnerships, including an expanded collaboration with State Farm across 17 states. ADT’s integration of AI in customer service has reportedly improved efficiency, and the company’s innovative offerings have been recognized with the Home Security Innovation of the Year award. Additionally, the company has set ambitious targets for 2025, projecting adjusted free cash flow between $800 million and $900 million. Analyst firms like Goldman Sachs have shown interest in ADT’s capital allocation strategy and partnership developments. The company remains focused on optimizing sales processes and expanding its ADT Plus platform to enhance customer experience.

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