Apollo-Backed Security Company ADT Files for U.S. IPO
(Bloomberg) -- ADT Inc., the security company backed by Apollo Global Management LLC, filed for a U.S. initial public offering.
The company filed with an initial offering size of $100 million, a placeholder that’s typically used to calculate fees and will likely change, according to a filing with the U.S. Securities and Exchange Commission Thursday.
ADT intends to use the proceeds to pay down debt and to redeem preferred securities issued by Koch Industries Inc. in May 2016. Three months before that date, Apollo agreed to take ADT private for about $6.9 billion, or $12.3 billion including debt. Apollo acquired ADT in May 2016 through its existing portfolio company Protection One. ADT is led by Chief Executive Officer Tim Whall, previously Protection One’s CEO.
ADT, which provides home-security monitoring, has about 7.2 million residential and business customers in the U.S. and Canada, according to the filing. More than 90 percent of its revenue comes from repeat payments from customers with whom it has contracts.
The Boca Raton, Florida-based company saw a net loss of $296 million on total revenue of $3.2 billion in the first nine months of this year. In 2016, it posted a net loss of $537 million on total revenue of $2.9 billion.
Morgan Stanley and Goldman Sachs Group Inc. are leading the offering. The company has applied to list its shares on the New York Stock Exchange under the ticker ADT.
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