ADT - ADT to sell commercial business for $1.6B

2023-08-08 08:08:16 ET

• ADT ( NYSE: ADT ) said Tuesday it will sell its commercial security, fire and life safety business unit to private equity firm GTCR for $1.6B.
• Proceeds from the sale, which is expected to close in Q4, will be used to reduce debt by $1.5B, with cash interest savings expected to offset the divestiture's impact. This will improving leverage ratio from the current level of 3.7 down to 3.3.
• The sale will help ADT ( ADT ) focus on investments that will drive capital-efficient revenue growth for the long term - core residential, small business and multifamily consumer markets.
• ADT's ( ADT ) capital allocation priorities and quarterly dividend remain unchanged.
• "The sale enables ADT ( ADT ) to monetize the commercial business at an attractive valuation and accelerate our debt reduction goals," said CEO Jim DeVries.
• "With greater financial flexibility, we will be better positioned to grow through our strategic differentiators and innovative offerings, including our partnerships with Google and State Farm," he added.
• ADT ( ADT ) also posted mixed Q2 earnings and narrowed its FY revenue outlook.

For further details see: