ADT entered into a definitive agreement to be acquired by an affiliate of certain funds managed by affiliates of Apollo Global Management and co-investors and merged with a subsidiary of Prime Security Services Borrower, a full-service business and home security company in the United States.

Financing is being provided by Barclays, Citigroup Global Markets, Deutsche Bank and Royal Bank of Canada. PSP Investments Credit USA is also a committed lender under this debt financing. Goldman, Sachs is serving as lead financial advisor to ADT, and BofA Merrill Lynch is also serving as financial advisor to ADT. Barclays, Citigroup Global Markets, Deutsche Bank and RBC Capital Markets are serving as financial advisors to Protection 1.

ADT is a leading provider of security and automation solutions for homes and businesses in the United States and Canada. ADT’s broad and pioneering set of products and services, including ADT Pulse® interactive home and business solutions, and health services, meet a range of customer needs for today’s active and increasingly mobile lifestyles.

The purchase price represents a premium of approximately 56% over ADT’s closing share price on February 12, 2016 and, when combined with Protection 1, represents an aggregate transaction value of approximately $15 billion. The headquarters of the combined company will remain in Boca Raton, FL, and the combined company will operate primarily under the ADT brand.

“This transaction represents a highly attractive premium for ADT’s shareholders,” said Naren Gursahaney, president and CEO of ADT. “We’re proud to have strengthened the quality of our customer base, improved service and retention, and extended our leadership in innovative solutions such as our ADT Pulse platform and our new Security-as-a-Service offering, ADT Canopy. By combining Protection 1 with ADT, we will be better positioned to expand the breadth and depth of the services we offer to our customers throughout the United States and Canada.”

“The combined company will be a market leader with a powerful brand and scale resulting in an enhanced overall customer experience,” said Timothy J. Whall, president and CEO of Protection 1, who will be the CEO of the combined business following the closing of the transaction.