Leading home and small business security provider ADT has revealed plans to divest its commercial security, fire, and life safety division in a strategic move aimed at enhancing its financial position. Private equity firm GTCR will acquire this segment for a total consideration of $1.6 billion.
The transaction is anticipated to generate approximately $1.5 billion in net proceeds, which ADT plans to utilize to reduce its existing debt load. The announcement led to a positive market response, with ADT shares experiencing an increase of up to 1.3% during premarket trading.
Jim DeVries, CEO of ADT, expressed confidence in the decision, stating, “This transaction represents a win-win scenario for both ADT and ADT Commercial. GTCR’s involvement is expected to bring valuable support and specialized expertise to the ADT Commercial segment.”
The divestiture aligns with ADT’s strategic vision and underscores the company’s commitment to refining its business focus. The completion of the sale is anticipated during the fourth quarter of 2023, subject to regulatory approvals and customary closing conditions.