ADT Inc. (NYSE:ADT) priced a secondary public offering of 102,000,366 shares of its common stock held by affiliates of Apollo Global Management, with the transaction scheduled to close on May 5 2026. The company will not receive any proceeds from the sale, as the shares are being sold by Apollo’s affiliates.
In conjunction with the offering, ADT will repurchase up to 29,142,961 shares from the underwriters at the offering price, using its existing $1.5 billion share‑repurchase authorization. The buyback is part of ADT’s ongoing capital‑management strategy to return value to shareholders while preserving flexibility in its capital structure.
The secondary sale marks the complete exit of Apollo Global Management from ADT, a significant shift in the company’s ownership profile. Because ADT is not raising capital, the transaction represents a liquidity event for Apollo and a capital‑management action for ADT rather than a new equity issuance.
ADT’s most recent quarterly results, released shortly before the announcement, showed adjusted earnings per share of $0.23 versus consensus estimates of $0.21, and revenue of $1.279 billion versus $1.26 billion expected. Adjusted free cash flow surged 83% year‑over‑year, and the company’s price‑to‑earnings ratio stands at 10.79×. A GF Score of 68/100 indicates solid performance relative to peers, though a financial strength score of 3/10 highlights some leverage concerns.
Management, led by Chairman, President and CEO Jim DeVries, emphasized confidence in the company’s long‑term trajectory and reiterated its commitment to shareholder returns through the newly authorized buyback program. The company’s recent performance and capital‑allocation decisions suggest a focus on sustaining growth while maintaining a disciplined balance sheet. Historically, similar secondary‑plus‑repurchase announcements for ADT have been followed by modest single‑digit declines, but the current transaction is primarily a structural adjustment rather than a capital raise.
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