Special Situation: ADT goes public

Article Excerpt

ADT INC. $11.94 (New York symbol ADT) makes security products for residential customers and businesses. They include wireless cameras, burglary alarms and surveillance systems. In May 2016, private equity firm Apollo Global Management LLC (New York symbol APO) bought ADT, an offshoot of the former Tyco conglomerate, for $6.93 billion. On January 19, 2018, ADT completed an initial public offering (IPO) on the New York exchange. It sold 105.0 million common shares at $14.00 each for a total of $1.47 billion. If underwriters exercise their option to buy more shares, ADT will receive an additional $220 million. Apollo continues to own roughly 85% of the company. ADT has positioned itself as a strong competitor in the so-called “smart-home” market where consumers can wirelessly connect to various of household devices. Through its recent acquisition of firewall software maker Datashield, the company has also entered the fast-growing cybersecurity field. ADT is a buy for aggressive investors. investors…