Thrive Capital in Talks to Take ADT Private; Shares Jump 8%
ADT sits 24% above its 52-week low of $6.03 on elevated volume (2.1× avg).
Summary
Thrive Capital, Josh Kushner's firm, is in talks to take ADT private, according to an Octus post on X, with a potential record-breaking private loan and bank financing being explored. No deal is finalized. Shares rose 8% on the report. The take-private interest lands after ADT beat Q2 revenue estimates, raised full-year guidance, and bought back $478 million of stock in the quarter, with adjusted free cash flow up 48% to $406 million. A buyout would come at a premium to the current price and would remove a heavily cash-generative, buyback-active name from the public market. Q3 results are due Tuesday, November 3rd.
At the time of this announcement, ADT was trading at $7.45 on NYSE in the Trade & Services sector, with a market capitalization of approximately $5B. The 52-week trading range was $6.03 to $8.89. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Seeking Alpha.