ADT announces sale of commercial business
ADT has entered into a definitive agreement to sell its commercial security, fire and life safety business unit to private equity firm GTCR for $1.6 billion, subject to customary purchase price adjustments. Proceeds from the sale, which is expected to close in the fourth quarter of 2023, will be used to reduce debt by $1.5 billion, with cash interest savings expected to offset the impact of divesting the commercial business.
The transaction supports ADT’s journey to be the premier provider of smart home and residential solar solutions.
The company also reported its second quarter results, ending the period with $1.6 billion in revenue and $92 million in net income.
ADT also shared that it plans to expand the home security offering for State Farm customers to up to 13 states by the end of the year. Currently, the program is live IN, IL and PA.
“The decision to divest ADT’s commercial business is a value-enhancing transaction that focuses our portfolio on growth opportunities in our consumer markets. The sale enables ADT to monetize the commercial business at an attractive valuation and accelerate our debt reduction goals. With greater financial flexibility, we will be better positioned to grow through our strategic differentiators and innovative offerings, including our partnerships with Google and State Farm. We will continue our journey to be the premier provider of safe, smart and sustainable solutions that meet the evolved definition of what safety means to consumers today.” – Jim DeVries, ADT President and CEO.
