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.
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.
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