Joshua Kushner’s Thrive Holdings agrees to buy ADT for $7.6bn in cash

Thrive Holdings, the holding company set up by Joshua Kushner’s Thrive Capital, has agreed to buy ADT for $10 a share in cash. ADT sells home security systems in the US. The deal values ADT at about $7.6bn in equity and $15.3bn in enterprise value.

The price is a 45.6% premium to ADT’s close of $6.87 on 27 October, the companies said in a joint announcement on Thursday. ADT’s board approved it unanimously. ADT shares rose 34% on the news, The Information reported.

“ADT is pleased to enter into this transaction, which recognizes the value built by our more than 12,000 employees and delivers an attractive cash premium to our stockholders,” said Jim DeVries, ADT’s chairman and chief executive.

Apollo returns as the lender

Funds managed by affiliates of Apollo Global Management are providing all of the financing. Apollo is ADT’s former owner, Claire Rychlewski reported for Axios. It took ADT private in 2016 and brought it back to the New York Stock Exchange in 2018. It sold its remaining stake five months ago.

The deal needs approval from ADT’s shareholders and US antitrust regulators. The companies expect it to close in the first quarter of 2027. Until 28 November, ADT may look for better offers, with a possible 10-day extension for some bidders. Once the sale closes, ADT’s shares will stop trading.

A holding company with OpenAI behind it

Thrive Capital set up Thrive Holdings last year as a permanent capital vehicle. That lets it own businesses for longer than a typical private equity firm. It owns more than 75 businesses in accounting, IT services and the built environment. ADT will become the base of its smart home security business.

OpenAI is a partner and an investor in Thrive Holdings, according to TechCrunch. It supplies AI models and engineers to the companies Thrive owns. Thrive Capital has also disclosed a $215m Amazon stake. Joshua Kushner is the brother of Jared Kushner, President Donald Trump’s son-in-law.

Thrive said in a blog post that new technology could cut false alarms and make alerts more informative. It could also spot faulty equipment earlier. Neither company has announced new products.

Customer data

ADT’s data and privacy policies will stay the same, the companies said. No new data sharing will happen without customers’ permission.

“Protecting customers’ homes also means protecting their data,” said Anuj Mehndiratta, a partner at Thrive Holdings.

ADT technicians sell and install Google Nest devices and Apple’s new smart home range, The Verge reported. Apple launched that range, including its $299 HomeView hub, this month. Amazon put a camera in its new Echo Studio this week.

ADT will report its third-quarter results on 3 November and will not take questions on the call.