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

Apollo Management sold 10.5 million shares of ADT Inc. common stock 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.
• The shares were sold by Prime Security Services TopCo (ML), L.P. (9,811,726 shares) and Prime Security Services TopCo (ML II), L.P. (688,274 shares), collectively known as the Apollo Stockholders.
• Following the transaction, Apollo Stockholders continue to beneficially own 278,650,366 shares.
• Apollo Management and related entities disclaim beneficial ownership of the shares except to the extent of their pecuniary interest.

Sentiment

Score: 6

Explanation: The document is a standard regulatory filing related to a share sale. It doesn't convey strong positive or negative sentiment, but the fact that Apollo is reducing its stake could be interpreted as slightly negative in the long term.

Industry Context

Private equity firms like Apollo often reduce their stakes in portfolio companies after an initial public offering or subsequent offerings to realize gains and return capital to investors. This sale is a continuation of that trend.

Comparison to Industry Standards

• Blackstone, another large private equity firm, has similarly reduced its stakes in companies like Hilton Worldwide and Invitation Homes after taking them public.
• The sale of 10.5 million shares is a significant transaction, but it's not uncommon for major shareholders to divest portions of their holdings over time.
• The price of $7.62 per share reflects the market's valuation of ADT at the time of the transaction.

Stakeholder Impact

• The sale could have a minor impact on ADT's stock price in the short term.
• The transaction allows Apollo to realize gains on its investment in ADT.
• The continued ownership of a significant number of shares by Apollo suggests ongoing interest in ADT's performance.

Key Dates