ADT Announces Launch of Secondary Public Offering of Common Stock and Concurrent Share Repurchase
Rhea-AI Summary
ADT (NYSE: ADT) has announced a significant secondary public offering where Apollo Global Management affiliates (Selling Stockholders) will offer 71 million shares of ADT common stock, with an additional 30-day option for 10.65 million shares. ADT will not receive any proceeds from this offering as it's not selling any shares.
Concurrent with the offering, ADT plans to repurchase approximately 11 million shares as part of its existing $500 million share repurchase program, utilizing the remaining capacity. Barclays and Citigroup are serving as book-running managers for the offering.
Positive
- Company demonstrates confidence in its stock through concurrent share repurchase program
- No underwriting fees will be charged for shares being repurchased by the company
- Offering may increase stock liquidity and broaden shareholder base
Negative
- Large secondary offering of 71 million shares could create selling pressure
- Significant reduction in Apollo Global Management's ownership stake
- Complete utilization of remaining share repurchase program capacity
News Market Reaction 2 Alerts
On the day this news was published, ADT declined 2.65%, reflecting a moderate negative market reaction. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $197M from the company's valuation, bringing the market cap to $7.25B at that time. Trading volume was elevated at 2.3x the daily average, suggesting increased selling activity.
Data tracked by StockTitan Argus on the day of publication.
BOCA RATON, Fla., July 24, 2025 (GLOBE NEWSWIRE) -- ADT Inc. (NYSE: ADT) (“ADT” or the “Company”) today announced a proposed secondary public offering of 71,000,000 shares of the Company’s common stock held by certain entities managed by affiliates of Apollo Global Management, Inc. (the “Selling Stockholders”). The underwriters will have a 30-day option to purchase up to an additional 10,650,000 shares of common stock from the Selling Stockholders. The Company is not selling any shares and will not receive any proceeds from the proposed offering.
In addition, ADT has authorized the concurrent purchase from the underwriters of approximately 11 million shares of common stock as part of the secondary public offering (the “Share Repurchase”) subject to the completion of the offering. The Share Repurchase is part of the Company’s existing
The underwriters may offer the shares of common stock, other than shares subject to the Share Repurchase, from time to time for sale in one or more transactions to purchasers, directly or through agents, or through brokers in brokerage transactions, on the New York Stock Exchange, in the over-the-counter market, through negotiated transactions or in a combination of such methods of sale, at a fixed price or prices, which may be changed, or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices, subject to receipt and acceptance by them and subject to their right to reject any order in whole or in part.
Barclays and Citigroup are acting as book-running managers for the proposed offering.
A shelf registration statement (including a prospectus) relating to these securities has been filed with the Securities and Exchange Commission (the “Commission”) and is effective. A preliminary prospectus supplement relating to the offering has also been filed with the Commission. Before investing, interested parties should read the shelf registration statement, preliminary prospectus supplement and other documents filed with the Commission for information about ADT and the offering. You may get these documents for free by visiting EDGAR on the Commission’s website at sec.gov. Alternatively, a copy may be obtained from: Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at: (888) 603-5847 or by email at Barclaysprospectus@broadridge.com; and Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at (800) 831-9146.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About ADT Inc.
ADT provides safe, smart and sustainable solutions for people, homes and small businesses. Through innovative offerings, unrivaled safety and a premium customer experience, all delivered by the largest network of smart home security professionals in the U.S., we empower people to protect and connect to what matters most.
Forward-Looking Statements
ADT has made statements in this press release that may constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and are made in reliance on the safe harbor protections provided thereunder. While ADT has specifically identified certain information as being forward-looking in the context of its presentation, we caution you that all statements contained in this press release that are not clearly historical in nature, including, among other things, the proposed secondary public offering of the common stock; the proposed repurchase of shares of the common stock; any stated or implied outcomes with regards to the foregoing; and other matters. Without limiting the generality of the preceding sentences, any time the Company uses the words “ongoing,” “expects,” “intends,” “will,” “anticipates,” “believes,” “confident,” “continue,” “propose,” “seeks,” “could,” “may,” “should,” “estimates,” “forecasts,” “might,” “goals,” “objectives,” “targets,” “planned,” “projects,” and, in each case, their negative or other various or comparable terminology, and similar expressions, the Company intends to clearly express that the information deals with possible future events and is forward-looking in nature. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. For ADT, particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include, without limitation, risks related to and the effect of the proposed secondary public offering of the common stock; activity in repurchasing shares of ADT’s common stock; and risks that are described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 and other filings with the Commission, including the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained therein. Any forward-looking statement represents our estimates and assumptions only as of the date of this press release and, except as required by law, ADT undertakes no obligation to update or review publicly any forward-looking statements, whether as a result of new information, future events, or otherwise after the date of this press release.
ADT Contacts Investor Relations: investorrelations@adt.com; 888-238-8525 Media Relations: media@adt.com.
FAQ
How many shares is ADT offering in its secondary public offering?
How many shares will ADT repurchase in the concurrent share repurchase?
Will ADT receive any proceeds from the secondary offering?
Who are the book-running managers for ADT's secondary offering?
How does this offering relate to ADT's share repurchase program?
