Josh Kushner's Thrive Capital has agreed to buy ADT, the home-security company, for $7.6 billion. Thrive will pay $10 a share in cash for the company.
The offer represents a 35% premium to ADT's closing price of $7.41 on Wednesday. The premium gives shareholders a substantial return over the most recent trading price and reflects the value Thrive sees in the business.
The deal would take ADT private, removing it from public markets and placing it under Thrive's ownership. The transaction is subject to the usual conditions, including regulatory and shareholder approvals, before it can close.
The acquisition underscores continued investor interest in home-security and smart-home services, a sector that has drawn attention from private equity and venture-backed firms seeking steady, subscription-based revenue. Further details on financing and timing are expected as the deal progresses.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing