Apollo Said to Near Acquisition of Security Firm ADT, WSJ Says

  • Portfolio company Protection 1 nears ADT purchase, report says
  • Private-equity firm to announce deal as soon as Tuesday: WSJ

Apollo Global Management LLC is nearing a deal to buy home-security company ADT Corp., the Wall Street Journal reported, citing unidentified people familiar with the matter.

The report didn’t provide exact terms of the takeover. ADT’s market value of $4.4 billion implies that a deal could value the company at more than $5 billion based on typical premiums, the Wall Street Journal reported Monday. The transaction to take the company private could be announced as early as Tuesday, according to the newspaper.

Apollo, based in New York, plans to use its Protection 1 portfolio company to buy ADT, the Wall Street Journal said. Apollo, led by Chief Executive Officer Leon Black, oversees $170 billion in private equity and credit funds, according to its fourth-quarter earnings report. The buyout firm went public in 2011.

ADT, based in Boca Raton, Florida, makes security products for homes, including burglary alarms and video surveillance. The company, which merged with conglomerate Tyco International Plc in the late 1990s, was spun off in 2012 to ADT shareholders, according to the Wall Street Journal.

Charles Zehren, a spokesman for Apollo at Rubenstein Associates Inc., didn’t immediately return an e-mail outside normal business hours. Representatives for ADT didn’t immediately respond to a message seeking comment.

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