Form 4: Apollo Global Management Sells 8.4 Million ADT Shares in Underwriter Option Exercise

Apollo Global Management entities sold 8.4 million shares of ADT Inc. common stock at $7.20 per share following the exercise of an underwriter option related to a previous public offering.

Summary

• On November 8, 2024, underwriters exercised their option to purchase an additional 8,400,000 shares of ADT Inc. common stock at $7.20 per share.
• The shares were sold by Prime Security Services TopCo (ML), L.P. (7,849,381 shares) and Prime Security Services TopCo (ML II), L.P. (550,619 shares), collectively known as the Apollo Stockholders.
• Following the transaction, Apollo Management Holdings GP, LLC, along with related entities, reported beneficial ownership of 359,150,366 ADT shares.
• Various Apollo-related entities and individuals, including Marc Rowan, Scott Kleinman, and James Zelter, disclaimed beneficial ownership of the shares, except to the extent of their pecuniary interest.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The document simply reports a transaction. There is no indication of positive or negative sentiment towards ADT's future prospects.

Industry Context

This transaction reflects ongoing activity in the security services sector, with major shareholders adjusting their positions in response to market conditions and company performance. It is common for large shareholders like Apollo to periodically adjust their holdings.

Comparison to Industry Standards

• Comparing this transaction to similar sales by major shareholders in comparable companies like Johnson Controls or Resideo Technologies, the size and timing often correlate with strategic portfolio adjustments or capital allocation decisions.
• For example, large private equity firms often reduce their stakes in portfolio companies after a period of ownership to realize returns for their investors.

Stakeholder Impact

• The sale of shares could have a minor impact on ADT's stock price in the short term due to increased supply.
• However, the long-term impact is likely to be minimal as the sale was part of a pre-existing agreement (underwriter option).

Key Dates