Thrive Holdings, the permanent capital investment business established by Joshua Kushner’s Thrive Capital Management, has agreed to acquire home security provider ADT in a $7.6bn all-cash transaction, according to Private Equity Wire. The offer is $10 per share and represents a premium of nearly 46% to ADT’s closing price on 27 October, according to Private Equity Wire.
Transaction terms and valuation
The $10 per share proposal values ADT at $15.3bn including debt, according to Private Equity Wire. Funds managed by affiliates of Apollo Global Management provided financing for the transaction, according to the same report.
Thrive Holdings background and investment approach
Thrive Holdings was established last year and is described as a permanent capital investment business established by Joshua Kushner’s Thrive Capital Management, according to Private Equity Wire. Thrive Holdings invests in, operates and incubates businesses seeking to apply artificial intelligence to traditional service industries, including accounting, according to the report. Its permanent capital structure allows it to hold businesses over longer periods than conventional private equity funds, according to Private Equity Wire.
ADT’s positioning and company statements
ADT was founded more than 150 years ago, according to Private Equity Wire. ADT said the acquisition would support the development of new customer offerings, according to the report. ADT CEO Jim DeVries said Thrive’s capital and technology expertise would help accelerate innovation and improve the customer experience, according to Private Equity Wire.
Source note
Private Equity Wire reported that the agreement was described as being “according to a report by Bloomberg,” as cited by Private Equity Wire.
