BOCA RATON, Fla. - ADT Inc. (NYSE: ADT), a provider of security solutions, has announced a secondary public offering of 56 million shares held by affiliates of Apollo Global Management (NYSE:APO), Inc. The offering includes an option for underwriters to buy an additional 8.4 million shares. Concurrently, ADT plans to repurchase 16 million shares as part of its $350 million share repurchase program, contingent on the completion of the offering.
The company clarified that it would not be selling any shares nor receiving proceeds from the secondary offering. The shares being repurchased will not involve any underwriting fees. The underwriters, which include Barclays (LON:BARC), Citigroup, and BTIG, may sell the shares on the New York Stock Exchange, over-the-counter market, or through negotiated transactions.
This move follows ADT's existing repurchase program and is detailed in a shelf registration statement and preliminary prospectus supplement filed with the Securities and Exchange Commission (SEC). Interested investors are encouraged to review these documents, available on the SEC's website, for more information about the offering.
ADT, known for its smart home security services, has emphasized that the press release contains forward-looking statements and that actual results could differ materially due to various risks and uncertainties. These risks are described in the company's filings with the SEC, including its annual and quarterly reports.
The announcement is based on a press release statement, and no sale of securities will occur in jurisdictions where it would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
In other recent news, ADT Inc. reported a robust financial performance for the third quarter of 2024. The company saw a 5% increase in total revenue, reaching $1.2 billion, and a 2% rise in recurring monthly revenue to $359 million. Adjusted EBITDA grew by 6% to $659 million, and the net debt to adjusted EBITDA ratio improved to 2.9x.
ADT also announced the strategic acquisition of a customer portfolio for $81 million, adding 49,000 subscribers. This acquisition is part of the company's ongoing growth initiatives, which also include an expanded partnership with Google (NASDAQ:GOOGL) and a new service offering with State Farm.
These recent developments demonstrate ADT's commitment to growth and strategic planning. The company's financial strength in the third quarter reflects its forward-thinking approach to expanding market share and enhancing customer experience. Despite potential service disruptions due to recent hurricanes, ADT's financial performance and strategic acquisitions indicate resilience and a clear path toward achieving its long-term objectives.
InvestingPro Insights
ADT's recent announcement of a secondary public offering and share repurchase program comes at a time when the company's financial metrics paint an interesting picture. According to InvestingPro data, ADT's market capitalization stands at $7.11 billion, reflecting its significant presence in the security solutions market.
The company's revenue for the last twelve months as of Q3 2023 was $5.14 billion, with a modest growth of 5.88% over the same period. This growth, albeit slow, demonstrates ADT's ability to expand its business in a competitive market. The company's gross profit margin of 79.49% for the same period indicates strong pricing power and efficient cost management in its core operations.
InvestingPro Tips highlight two key aspects of ADT's financial performance:
1. ADT has demonstrated strong revenue growth, consistently increasing over the past years.
2. The company has a high return on invested capital, suggesting efficient use of its resources.
These tips are particularly relevant in light of the announced share repurchase program, as they indicate the company's financial health and ability to generate value for shareholders.
It's worth noting that ADT's P/E ratio (adjusted) stands at 328.5, which might seem high at first glance. However, when considered alongside its PEG ratio of 0.23, it suggests that the company's growth potential may not be fully reflected in its current stock price.
For investors seeking a deeper understanding of ADT's financial position and growth prospects, InvestingPro offers additional tips and insights. In fact, there are 13 more InvestingPro Tips available for ADT, providing a comprehensive analysis of the company's financial health and market position.
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