Form 4: Apollo Entities Sell $88.5M ADT Shares

Apollo-affiliated entities disposed of 10.65 million shares of ADT Inc. common stock for approximately $88.5 million as underwriters exercised an option from a prior public offering.

Summary

• Apollo-affiliated entities, specifically Prime Security Services TopCo (ML), L.P. and Prime Security Services TopCo (ML II), L.P. (collectively, the Apollo Stockholders), sold 10,650,000 shares of ADT Inc. common stock.
• The sale occurred on August 6, 2025, at a price of $8.31 per share.
• The total value of the shares sold amounts to approximately $88,471,500.
• This transaction resulted from underwriters exercising their option to purchase additional shares in a previously reported public offering.
• Following this transaction, the Apollo Stockholders beneficially own 102,000,366 shares of ADT Inc. common stock.
• Apollo Management Holdings GP, LLC, Apollo Management GP, LLC, and Apollo Management Holdings, L.P. are listed as reporting persons due to their indirect beneficial ownership and control over the Apollo Stockholders.

Sentiment

Score: 5

Explanation: The sentiment is neutral. While a large sale by a major shareholder could be seen negatively, the filing explicitly states it was due to underwriters exercising an option from a 'previously reported public offering', suggesting it was a planned event rather than an unexpected divestment.

Negatives

• A significant sale of shares by a major shareholder and 10% owner, even if part of a pre-planned offering, can sometimes be perceived as a reduction in conviction or a move to monetize holdings, potentially creating downward pressure on the stock.

Risks

• The sale of a large block of shares by a major investor could increase market supply, potentially impacting ADT's stock price.
• Investor sentiment might be negatively affected if the market interprets the sale by a significant shareholder as a lack of confidence, despite it being part of a pre-existing offering.

Future Outlook

NA

Industry Context

This filing reports a specific transaction by a major institutional investor in ADT Inc., a company operating in the security services industry. Such large block sales by significant shareholders are common as part of portfolio management or monetization strategies, especially following initial public offerings or secondary offerings.

Related Party Transactions

• The transaction involves Apollo-affiliated entities, which are 10% owners and have director representation on ADT Inc.'s board, selling shares of ADT Inc. common stock. This constitutes a transaction between a company and a significant shareholder/affiliate.

Stakeholder Impact

• Shareholders: The sale of a large block of shares by a major investor could lead to increased supply in the market, potentially influencing share price.
• Investors: Provides transparency regarding the holdings and transactions of a significant institutional investor in ADT Inc.

Key Dates

Keywords

ADT Inc., Apollo Management, Stock Sale, Beneficial Ownership, SEC Form 4, Public Offering, Underwriter Option, Common Stock