ADT Announces Closing of $450 Million Investment by Google

Rhea-AI Summary

ADT announced the completion of a private placement with Google, selling 54,744,525 shares of Class B common stock for $450 million. This sale represents approximately 6.6% of ADT's outstanding common stock. The proceeds will primarily be used for growth initiatives and debt reduction. The partnership with Google is expected to enhance ADT's market position in security and smart home solutions. Despite the positive outlook, potential risks remain due to uncertainties surrounding future market conditions and ADT's ability to capitalize on the investment.

Positive

• Completed a private placement of 54,744,525 shares to Google for $450 million.
• The investment represents approximately 6.6% of ADT's outstanding common stock.
• Proceeds are aimed at funding growth initiatives and reducing debt.

Negative

• Potential risks linked to uncertainties in future market conditions.
• Dependence on successfully utilizing Google's investment for growth.

BOCA RATON, Fla., Sept. 17, 2020 (GLOBE NEWSWIRE) -- ADT Inc. (NYSE: ADT) (“ADT” or the “Company”), a leading provider of security, automation, and smart home solutions serving consumer and business customers in the United States, today announced that, upon the terms and subject to the conditions set forth in the previously disclosed Securities Purchase Agreement, dated as of July 31, 2020, with Google LLC (“Google”), the Company issued and sold in a private placement to Google 54,744,525 shares of Class B common stock, par value $0.01 per share, of the Company for an aggregate purchase price of $450 million (the “Private Placement”). The shares of Class B common stock issued to Google represent approximately 6.6% of the issued and outstanding common stock of the Company on an as-converted basis. The Company expects to use the net proceeds from the Private Placement for further growth initiatives and to reduce debt over time.

About ADT

ADT is a leading provider of security, automation, and smart home solutions serving consumer and business customers through more than 300 locations, 9 owned and operated monitoring centers, and the largest network of security professionals in the United States. The company offers many ways to help protect customers by delivering lifestyle-driven solutions via professionally installed, do-it-yourself, mobile, and digital-based offerings for residential, small business, and larger commercial customers. For more information, please visit www.adt.com or follow us on Twitter, LinkedIn, Facebook, and Instagram.

Forward-Looking Statements

The Company has made statements in this press release and other reports, filings, and other public written and verbal announcements that are forward-looking and therefore subject to risks and uncertainties. All statements, other than statements of historical fact, included in this document are, or could be, “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and are made in reliance on the safe harbor protections provided thereunder. These forward-looking statements relate to, among other things, our recently executed long-term, strategic partnership with Google LLC (“Google”) and any stated or implied outcomes with respect thereto, our future growth prospects, our success with respect to product innovation and the market acceptance thereof, the current or future market size for our products, our ability to meet the milestones we have established with respect to our strategic partnership with Google, our ability to effectively utilize any of the amounts invested in us by Google, our anticipated financial performance, management’s plans and objectives for future operations, business prospects, the outcome of regulatory proceedings, market conditions, our ability to successfully respond to the challenges posed by the COVID-19 pandemic, and other matters. Any forward-looking statement made in this press release speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. Forward-looking statements can be identified by various words such as “expects,” “intends,” “will,” “anticipates,” “believes,” “confident,” “continue,” “propose,” “seeks,” “could,” “may,” “should,” “estimates,” “forecasts,” “might,” “goals,” “objectives,” “targets,” “planned,” “projects,” and similar expressions. These forward-looking statements are based on management’s current beliefs and assumptions and on information currently available to management. The Company cautions that these statements are subject to risks and uncertainties, many of which are outside of the Company’s control, and could cause future events or results to be materially different from those stated or implied in this press release, including among others, risk factors that are described in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings with the Securities and Exchange Commission, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained therein.

Contacts:
ADT Investor Relations
Derek Fiebig
derekfiebig@adt.com

ADT Media
Paul Wiseman
paulwiseman@adt.com

FAQ

What is the recent investment made by Google in ADT?

Google invested $450 million in ADT by purchasing 54,744,525 shares of Class B common stock, representing about 6.6% of ADT's outstanding shares.

How will ADT use the proceeds from the Google investment?

ADT plans to utilize the proceeds for growth initiatives and to reduce debt.

What does the partnership with Google mean for ADT?

The partnership is expected to enhance ADT's market position in security and smart home solutions.

What risks did ADT mention regarding its partnership with Google?

ADT highlighted potential risks related to uncertainties in future market conditions and its ability to leverage the investment for growth.