No Acquirer for ADT, PE Firm Selling Off $400+ Million ADT Shares Analyzed
********, ***'* ***** *** ******* **% in *** **** **** ********** ** **** ******. ***, *** *********** ***********, ****-** firm ****** ******, ** ******* *** a *********** ***** ** *** *** less **** *** ******* ****** ***** price.
*** *** *********** **** ********** *** hopes **** *** **** *** *****, including******'* **** ************* ********* ****'* **** ***.
*******, **** ******** ****** ******** *** Apollo's **** **** ***** ***** ** no ********* ******** *** *** ** this ***** *****, *** **** **** Apollo ** *********, *** ********** *** faces, *** *** ***** **** ********* for ***** ** ****-****** ********* ** the ********, **** ************ ***********.
Executive *******
****** * ****** *********** ******** ***, **** ** * **** **** it ** ********** ** *** *** of *** *** *********, ****** *********** zero ****** ******** ** *** ****** 24% *** ***, ** ******** **** of $** ******* ** **** **** their ****.
*** **** **** ****** ********* ***** to **** *** ****** ** **** than *** (******* *********) ****** ******) is * **** *** ****** ** the ******. ******, ** ****** ***** have ********* * ***** ** *** any ******** ******* *** ***, **** would **** **** * ****** ****** than ****.
*** ******, ** ** ***** ****, within *** ********, ** **** ****** would **** ** *** *** *** of ***. **** ***** **** ******* Google *** ****** **** ** ********** without *** ***** ***** ************* **** or *** ******* ** *** ******* significantly ****** *******.
*** **************** **** **** **** ****-*********** ******** *** *** ********* ******, but *** ******* *** ** **** growth ***** ** * ****** ******, with ****** ****************** ****** ** *** DIY *******, ** **** *** ** not ************* ***** ** ***** **.
Terms ** *** ****
*** ********* ** *** **** ****** press *********** ** ** ******* ** ******* shares ** $*.* *** *****, ***** equates ** ******* $***.* ******* ***** of ******:
*** ***. (****: ***) (“***” ** the “*******”) ***** ********* *** ******* of * ********* ****** ******** ** 65,000,000 ****** ** *** *******’* ****** stock **** ** ******* ******** ******* by ********** ** ****** ****** **********, Inc. (*** “******* ************”) ** * price ** *** ****** ** $*.** per *****.
*** ******** ***** ******* ** *** same *** (***** *), *** **** ****** *** **** selling ** ******* ****** *** *** not ******** *** ******* ** *** offering. ** ****** *** *** ************ supersedes *** ******** ***.
Apollo ******* * *********** ***********
****** ***** **% ** *** ** the *** ** **** ********* ******* **** ** *** ****** to ***** **** ** ****,*** *** **** **-*:
** ** ******** **, ****, ****** owned ************* **%, ***** **** ***** approximately **%, *** ****** ***** ************* 6% ** *** *********** ****** *****, including ****** ** ***** * ****** stock, *** ***** $*.** *** ***** (“Class * ****** *****”) (** ** as-converted *****) *** ******** ****** ** common *****.
***** ******* ***** ******, ****** **** still *** ******* ** **** ***** 50% ** ***'* *****, ** ** still ***** ** ********* *** ** get *** ** ***** ******. ******* ** **** ******** ** ** a "********** *******"***** *** **** ******* *****.
Apollo's ****
****** ** ** **** ** ******* have **** ******* ******* ****** *** for **** ***** *****, * ***** bad ******* *** ** ***** **** expect ** ******** **% *** ** their ***********. ******,****** ******** **% *** ***. *** **** to ******* ***** ** ****, **** would **** ** **** *** ** a ********* ** *** ***** ** $20 *******, ***** ********* *** ** far ****.
****** ******** *** ** **** ** the **** ********* ($*.* *******) *** had *********. *** ~$*** ******* ****** intends ** **** *** **** ** 10% **** **** *** ********* **** bought ****** * ****** ***. ****** funded *** **** **** * ******** $3.57 ******* ** ******,*** *** **** *-* ******.
Long ********* *******
** ********* ** * ******* ** the *** ******* **** **** ** the **** ********* ******** **** ****** has *** ***. ******* ****** ***** to **** ***** ** ******* * to * *****, ********** ******* *** longer *** ********, *** ******* *** compounding, *** *** ****** ** ** to ******* *** ******* **** ** firms ****.
**********, ****** *** **** ** ******* ADT *** **** **** ** ****** in ***** *** ***** (********** ******** ****, ***** ** ******* ****). ** the *** *** **** **********, **** could **** ******* ****** ** **** a *** ***** ** * ******* return (*** ***, *.*., *** ****** at ~$**.* *******). *******, ***** *** price *********** ******* *** **** *****, very ******* **** ***** ** **** in *** ****-**** ***** *****, ****** has *** **** **** ** **** reasonably.
ADT ****** ******
*** *** ********** ********** ******* *% of******'* ******* ********$**.* ******* ** ****** ***** **********:
**, *** *** **** ** *** is ** *********** **** ** ******, but ** **** **** **** *** returns *** ** * ***** *** for *** ********* ****** ****** **** made **** ****.
*******, ******, ****** ** ** **** its ***** ****** ****** ***% ** the **** **** *****:
ADT ***** *******
***'* ***** *** **** **** **** 45% ***** ** **** ******:
*** *******'* ***** *** **** ~**% today ***** *** ************ ** ******'* sale ***** *** ****** ****** *********,** **** ******** ******'* **** ** confidence ** ******* *** **** ***** the ******** ****** *****:
ADT ****** **** **** ** ******'* ****
******* ** *** **************** ** ***** *** **** ** million ** *** ** ******* ****** of *** ****** ********, ~**% ** the ****** ****** ** ********* **** ** *** "***** ********** Plan ******** *** ********* ** ******* 2024":
*** *** ********** *** ********** ******** from *** ************ ** **,***,*** ****** of ****** ***** ** **** ** the ********* ****** ******** (*** “***** Repurchase”) ******* ** *** ********** ** the ********. *** ***** ********** ** part ** *** *******’* ******** $*** million ***** ********** *******. *** ************ will *** ******* *** ************ **** for *** ****** ***** *********** ** the *******.
ADT **********
*** *** **** ***** ******** **** its ********* ** ** **** ******* to**** *** ********** ******** ** *** out *****,**** *** ****-********** *** ****-**** ***** business(***** **** *** ***** *** ****** a ******* *******), *** ******* ******** cost ****.
***** *** ******* ********** ** ******* ******** ******** **** the ***** ********* ************ *******, ********* *** ******* *** ** patience, ***** *** ******** ***** ***** growth **** *** **** *** ***** and ****** ********** ********* **** ** its ***** ********.
*** ** *** *********, *** ** we ****** *** **** ******** ******** to **** ** **** **** *% annually.
Google ******
*** ****, ** ****, ** *****, is **** ****** ** ** *** and *** ** **** ********* **** it ***** ***** ************* ****** ******. While *** ****** *********** ** ***** progressing **** ********* ***** ** ****** products, ** ***** *** ******** **** this ***** ** **** **** * marginal *********** ** *** *******'* ******* business *** ********* *** * ************** one **** ***** ***** *** ****** of ******* ** ***** ****.
PE **** ***** *** ***********
**** ** * ********** **** *** arguably *** ** ***** *** *** integrator ****-*** ********* ***** ****. ******* Convergint, ****** (****** *** **********), *** Pavion, ** ***** *** ********* * few ******** ** ******* **** ******** integrators.
*** **** **** ** **** ***'* problems *** ********* * ******** ** the *********** / ******** ******** ******. In ********, *** ************ / ********** market, ***** ***** *********** *****, ** not ******* ** *** ********* ** DIY, ** *** *** ****. ***********, the ******* ** *** ***** ******** could ** ****** ** * *********** management ******* **** **** *** ******* on ********** ********* ** ** ***** other *********.
** *** ***** ****, ***** ** view *** **** ** *** *********** market ** ** *******, ** *** skeptical **** * ** ****** ******** integrators *** *** ******* *** ******* that *** ********* *** *** *** that *** ** ******** ** ***** will ********** **** * **** ******* to ***, *** ******** ***** ** failing *** ***** ** **** ******, bad ******* *********.