Form 4: Apollo Management Sells 10.5 Million ADT Shares in Underwriter Option Exercise

Apollo Management Holdings GP, LLC reports the sale of 10.5 million ADT Inc. shares at $7.62 per share following the exercise of an underwriter option.

Summary

• Apollo Management Holdings GP, LLC reported changes in beneficial ownership of ADT Inc. shares on March 11, 2025.
• Underwriters exercised their option to purchase an additional 10,500,000 shares of ADT common stock at $7.62 per share.
• Of these shares, 9,811,726 were held by Prime Security Services TopCo (ML), L.P., and 688,274 were held by Prime Security Services TopCo (ML II), L.P.
• Following the transaction, the Apollo Stockholders beneficially own 278,650,366 shares.
• Multiple entities within the Apollo Management structure disclaim beneficial ownership of the shares, except to the extent of their pecuniary interest.

Sentiment

Score: 5

Explanation: The sentiment is neutral as it reports a transaction without expressing positive or negative views about the company's prospects. It's a factual disclosure of a share sale.

Industry Context

This transaction reflects a partial exit by a major shareholder (Apollo Management) from ADT Inc., which is common after a period of ownership and value creation. The market will likely analyze the remaining stake and future intentions of Apollo.

Comparison to Industry Standards

• Private equity firms like Apollo often distribute shares after a holding period, similar to KKR's distribution of Walgreens Boots Alliance shares or Blackstone's partial exits from Hilton Worldwide.
• The size and method of the sale (underwriter option) are typical for large shareholders seeking to reduce their positions without significantly impacting the market price.

Stakeholder Impact

• The sale could have a minor impact on ADT's stock price due to the increased supply of shares.
• The reduction in Apollo's stake might signal a shift in the company's strategic direction or governance.

Key Dates