ADT Inc. has entered into a definitive agreement to be acquired by Thrive Holdings in a transaction valued at $15.3 billion, with an expected closing date in first-quarter 2027. Financing commitments for the transaction will be provided by affiliates of Apollo Global Management. However, details of the terms were not disclosed. Uncertainty surrounding ADT’s $7.8 billion existing debt and the potential for further debt issuance pose risks to the company’s credit profile. We placed all our ratings on ADT, including the ‘BB’ issuer credit rating, on CreditWatch with negative implications, reflecting the possibility for a single-notch downgrade. The acquisition is likely to weaken ADT’s credit metrics. Thrive Holdings will acquire all outstanding shares of the company in a take-private transaction.
