BOCA RATON, Fla. - ADT Inc. (NYSE:ADT), a provider of security solutions, has priced its secondary public offering of 56 million shares held by affiliates of Apollo Global Management (NYSE:APO). The offering is slated to close on October 30, 2024, with customary closing conditions. Underwriters have a 30-day option to buy an extra 8.4 million shares from the selling shareholders.
ADT is not selling shares in this offering and will not receive proceeds from the sale. Concurrently, the company is set to repurchase 16 million shares from the underwriters as part of the offering, at the same price paid to the selling shareholders. This repurchase is under ADT's ongoing $350 million share repurchase program, and no underwriting fees will be charged for these shares.
The shares, excluding those in the repurchase, may be sold by the underwriters in various sales methods, including on the New York Stock Exchange, over-the-counter transactions, or through negotiation, with the possibility of fluctuating prices.
Barclays (LON:BARC), Citigroup, and BTIG are the book-running managers for this offering. The securities are registered with the Securities and Exchange Commission (SEC), and further details are available in the preliminary prospectus supplement filed with the SEC. Potential investors are advised to read these documents, which are accessible on the SEC's website or directly from the underwriters.
This press release does not constitute a sales offer or a solicitation to buy, and sales will not be made in jurisdictions where such actions would be illegal before registration or qualification under the securities laws of those jurisdictions.
ADT's forward-looking statements in the press release are based on current estimates and assumptions and are subject to risks, including the impact of the secondary offering and share repurchase activities. The company's filings with the SEC provide more detailed information about these risks.
The information in this article is based on a press release statement from ADT Inc.
In other recent news, ADT Inc. announced a secondary public offering of 56 million shares, with an option for underwriters to buy an additional 8.4 million shares. Concurrently, the company plans to repurchase 16 million shares as part of its ongoing share repurchase program. The shares being repurchased won't involve underwriting fees, and Barclays, Citigroup, and BTIG may sell the shares on various platforms.
In financial developments, ADT reported a 5% increase in total revenue to $1.2 billion for the third quarter of 2024. Recurring monthly revenue rose by 2% to $359 million, and adjusted EBITDA grew by 6% to $659 million. The company also improved its net debt to adjusted EBITDA ratio to 2.9x.
Moreover, ADT acquired a customer portfolio for $81 million, adding 49,000 subscribers to its base. This acquisition is a part of the company's growth initiatives, which also include an expanded partnership with Google (NASDAQ:GOOGL) and a new service offering with State Farm. These recent developments highlight ADT's strategic planning and commitment to growth.
InvestingPro Insights
As ADT Inc. (NYSE:ADT) moves forward with its secondary public offering and share repurchase program, investors may find additional context from recent financial data and expert analysis valuable.
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 2024 reached $5.14 billion, with a modest growth of 5.88% over the same period. This growth, albeit slow, indicates ADT's ability to maintain and slightly expand its market position in a competitive industry.
ADT's gross profit margin of 79.49% for the last twelve months ending Q3 2024 is particularly noteworthy. This high margin suggests that the company has strong pricing power and efficient cost management in its core operations, which could be attractive to potential investors in the secondary offering.
An InvestingPro Tip highlights that ADT's dividend payments have grown significantly, with a 57.14% increase in the last twelve months. This substantial dividend growth may appeal to income-focused investors and could potentially support the stock price during the offering period.
Another relevant InvestingPro Tip points out that ADT stock is trading near its 52-week high, with the current price at 95.52% of that peak. This performance could indicate positive market sentiment towards the company, which might bode well for the success of the secondary offering.
For readers interested in a more comprehensive analysis, InvestingPro offers 15 additional tips for ADT, providing a deeper understanding of the company's financial health and market position.
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