Apollo Global buying home security firm ADT for $6.94 billion

Home security services company ADT Corp. has agreed to be purchased by affiliates of Apollo Global Management for about $6.94 billion.

ADT's stock surged more than 50% in Tuesday's premarket trading.

ADT shareholders are to receive $42 a share. That's a 56% increase from Friday's closing price of $26.87.

The companies said ADT would be merged with a subsidiary of Prime Security Services Borrower, which is also owned by Apollo, a private-equity firm.

See more of our top stories on Facebook >>

The combined business would operate primarily under the ADT brand and be based in Boca Raton, Fla.

ADT has a 40-day period in which it can actively seek out alternative proposals.

ADT's board has approved the acquisition, which is targeted to close by June. It still needs ADT shareholder approval.

MORE FROM BUSINESS

Fight against SeaWorld pays off for PETA in fundraising

Obama's budget plan would allow greater scrutiny of high drug prices

After half-billion-dollar week, China's February box office may again top North America's

Copyright © 2016, Los Angeles Times
60°