ADT sells Commercial business to GTCR for $1.6B; proceeds to pay down debt

ADT Inc.

Cash purchase price $1.6125B; expected net proceeds ~$1.5B after tax and adjustments.
Deal at ~11.2x Commercial Adjusted EBITDA; cash interest savings offset divested EBITDA.
ADT plans to reduce debt by ~$1.5B, lowering net leverage from 3.7x to 3.3x.
Transaction expected to close in Q4 2023, subject to regulatory approvals and customary conditions.
Quarterly dividend unchanged; ADT reaffirms capital allocation priorities.

item 1.01 item 7.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

ADT Inc. entered into Purchase Agreement with Iris Buyer LLC valued at $1,612,500,000 in cash (effective 2023-08-07).

Action: entry
Agreement: asset purchase
Counterparty: Iris Buyer LLC
Value: $1,612,500,000 in cash
Effective: 2023-08-07

Exact text from the filing

On August 7, 2023, ADT Inc., a Delaware corporation (“ ADT ”), Iris Buyer LLC, a Delaware limited liability company (“ Purchaser ”), and, solely for certain purposes set forth in the Purchase Agreement (as defined below), Fire & Security Holdings, LLC, a Delaware limited liability company, entered into an Equity Purchase Agreement (the “ Purchase Agreement ”).

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281 material agreements filed in the last 30 days. Browse all material agreements →

ADT Inc. filing history →

Source: SEC EDGAR

accession 0001193125-23-205548

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