Form 4: Apollo Sells 70 Million ADT Shares in Public Offering

Apollo Global Management reduces its stake in ADT Inc. through a public offering of 70 million shares at $7.62 per share.

Summary

• Apollo Management Holdings GP, LLC, along with affiliated entities, reported the sale of 70,000,000 shares of ADT Inc. common stock on March 4, 2025.
• The shares were sold at a price of $7.62 per share in an underwritten public offering.
• The sale was conducted by Prime Security Services TopCo (ML), L.P. and Prime Security Services TopCo (ML II), L.P., collectively known as the Apollo Stockholders.
• TopCo ML LP sold 65,411,506 shares, while TopCo ML II LP sold 4,588,494 shares.
• Following the transaction, the Apollo Stockholders continue to beneficially own a significant number of ADT Inc. shares.
• Several entities are related to the Apollo Stockholders, including Prime Security Services TopCo (ML), LLC, Prime Security Services TopCo (ML II), LLC, Prime Security Services TopCo Parent GP, LLC, AP VIII Prime Security Services Holdings, L.P., Prime Security Services GP, LLC, AP VIII Prime Security Services Management, LLC, and Apollo Management, L.P.
• These entities and their managers disclaim beneficial ownership of the shares except to the extent of their pecuniary interest.

Sentiment

Score: 5

Explanation: The sentiment is neutral. It's a standard transaction of a major shareholder reducing their stake. The impact on the company depends on how the market perceives the reasons behind the sale.

Industry Context

This transaction reflects a partial exit by a major shareholder, Apollo Global Management, from its investment in ADT Inc. Such transactions are common in the private equity lifecycle, allowing firms to realize gains and return capital to investors. The market's reaction to this sale will be indicative of investor sentiment towards ADT's future prospects.

Comparison to Industry Standards

• Comparing this transaction to similar secondary offerings in the security services industry, the size of the offering (70 million shares) is substantial and could exert downward pressure on the stock price in the short term.
• Other companies with significant private equity ownership, such as Vivint or Ring (owned by Amazon), have seen similar stake reductions by their major shareholders over time.
• The price of $7.62 per share will be benchmarked against ADT's historical trading range and analyst valuations to assess whether the offering was priced attractively.

Stakeholder Impact

• Shareholders may experience short-term price volatility due to the increased supply of shares.
• Employees are unlikely to be directly affected by this transaction.
• Customers and suppliers should not be directly impacted.

Key Dates