- Home-security company ADT agreed to be acquired for $7.6 billion in cash by Thrive Holdings, the investment vehicle formed by Josh Kushner’s venture-capital firm Thrive Capital. Thrive will pay $10 a share, a 35% premium to Wednesday’s close of $7.41.
- The deal carries an enterprise value of $15.3 billion, which implies roughly $7.7 billion of net debt and other obligations on top of the equity price. Apollo Global Management is providing the financing commitments.
- ADT shares jumped 34% to $9.93 in early trading, leaving them about 7 cents, or roughly 0.7%, below the offer price. That narrow gap suggests investors see a high likelihood the deal closes.
- Thrive Holdings is a permanent-capital company that buys established businesses and injects them with artificial intelligence. It raised $2 billion from outside investors at a $12 billion valuation in August, making ADT one of its largest bets yet.
What Happened?
ADT, based in Boca Raton, Fla., announced the agreement Thursday. The transaction is slated to close in the first quarter of 2027. The agreement includes a 30-day go-shop period during which ADT can seek a better offer. Thrive Holdings was formed last year by Thrive Capital, and earlier this year it joined with ZBS Partners to invest $100 million in an entity set up to bring AI to information-technology services companies. Josh Kushner is the brother of Jared Kushner, President Trump’s son-in-law.
Why It Matters?
The deal is a large test of the idea that venture-backed capital can buy mature, cash-generating companies and lift their value with AI, rather than building new businesses from scratch. ADT’s large installed base of monitored homes gives Thrive a recurring-revenue platform to apply automation in areas such as monitoring and customer service. The heavy debt load embedded in the enterprise value, and Apollo’s role in financing it, also highlights how private credit continues to back large take-private deals despite higher interest rates.
What’s Next?
The 30-day go-shop is the first milestone to watch: a rival bid would likely show up in ADT trading above $10. After that, investors will track regulatory approvals and financing on the way to a first-quarter 2027 close. The outcome will also shape whether Thrive Holdings and similar AI-focused permanent-capital vehicles pursue more public-company acquisitions.
Affected Tickers and Coins: ADT, APO
Source: The Wall Street Journal
