Apollo Sells Out of ADT, Ending Nearly Decade-Long Investment

Apollo Global Management is walking away from ADT. The private equity giant priced a sale of all its remaining shares in ADT Inc. (NYSE: ADT) on May 4, seeking up to $770 million for more than 102 million shares at a range of $7.30 to $7.55 each, according to Bloomberg News. The offering represented a discount of as much as 3.3% to May 1’s closing price of $7.55, and the deal is expected to close May 5.

ADT announced is not selling shares and will not see any of the proceeds. Barclays, Citigroup, Morgan Stanley, Goldman Sachs and BTIG are managing the offering.

As part of the transaction, ADT agreed to buy back 29.14 million of those shares from the underwriters at the same price Apollo receives, using the company’s existing $1.5 billion buyback program. The underwriters will collect no fees on the shares ADT takes back.

How Apollo built and exited ADT

Apollo’s involvement with ADT dates back to 2016, when an affiliate of Apollo Global Management acquired the company in an all-cash transaction valued at approximately $6.9 billion. The deal combined ADT with Protection 1, a security provider Apollo had acquired the prior year, creating a larger, integrated residential and commercial security platform under the ADT brand.

Following the acquisition, Apollo moved to consolidate operations and scale the business, leveraging ADT’s sizable base of recurring monitoring revenue. The combined company brought together ADT, Protection 1 and ASG Security into a single national provider, positioning the business for a return to the public markets after integration efforts were underway.

That next step came in 2018, when ADT was taken public again through an initial public offering, with Apollo retaining a significant ownership stake. In the years since, Apollo has gradually reduced its position through a series of secondary offerings, making the current transaction the latest step in a long-running exit strategy.

Industry reaction

Apollo has been working toward an exit since ADT went public in January 2018, according to Peter Giacalone, president of Giacalone Associates. “They have realized some of their investments over a variety of creative exits,” he said, pointing to the 2022 arrangement that brought State Farm in as a major ADT investor. “This is a long stretch of time to wait to realize your investment.”

Giacalone said the move should not be read as a reflection on ADT’s standing in the market. “ADT is a strong company,” he said. “The exit of Apollo was long overdue.” He added that while ADT needs to strengthen its DIY offering, he does not see the Apollo exit as connected to competitive pressures in that segment.

“They have held onto ADT longer than expected,” Giacalone said. “I still believe ADT is a really strong company. It appears through some of their affiliations and investments that they have been positioning the company to maintain their strong position and get creative as they cement that and grow further.”

Kirk MacDowell, founder and CEO of MacGuard Security Advisors, characterized the move as a natural conclusion to a disciplined investment cycle. “Apollo has been disciplined over the years with their investment in the industry since 2015, so this isn’t a kneejerk reaction,” MacDowell said. “I would think that the timing has to do with the fact that the investment has run its course and Apollo will seek new opportunities with a quicker trajectory than the current ADT investment.”

MacDowell pointed to the competitive pressure from DIY security platforms as a factor that likely entered the conversation, even if it was not the primary driver. “The DIY product and services platform keeps getting better with additional intuitive offerings that consumers desire,” he said. “And although ADT does have a DIY offering, the market has either not understood the offering or dismisses ADT as a viable DIY player.”

Looking ahead, MacDowell said ADT’s most significant outside shareholders are now Google and State Farm, both of which have substantial interests in the residential market independent of ADT. “I predict that ADT will align themselves to the higher-end residential market and SMB,” he said. “I don’t envision that Apollo will move significantly away from the recurring monthly revenue model.”

Elizabeth Parks, president and CMO of Parks Associates, said market data supports ADT’s position as the sector leader entering this transition. “Parks Associates data shows ADT remains the clear leader in security system ownership as Apollo exits, with ADT holding roughly one-third of the installed base and increasing to 33% in Q4 2025 among all system owners,” Parks said. She added that ADT also leads among systems acquired in the past year, with its share of recent buyers rising from 21% in Q4 2022 to 26% in Q4 2025.

“In a market where security providers are leaning into AI, new service models, pro-install channels and platform expansion, ADT’s scale and continued strength in recent acquisitions position it as a differentiated asset in a competitive and evolving home security landscape,” Parks said. “Competition is fierce for home security solutions and companies continue to expand and grow their value among customers.”