Thrive Holdings has agreed to acquire US home security provider ADT in an all-cash deal worth about A$10.8 billion, giving the company a major foothold in the smart home security market.

Under the agreement, Thrive will pay ADT shareholders US$10 per share, equivalent to about A$14.23. That represents a 45.6 per cent premium to ADT’s closing share price of US$6.87, or approximately A$9.77, on October 27.

The transaction values ADT at around US$15.3 billion on an enterprise basis, equal to roughly A$21.8 billion.

Thrive Holdings is backed by Joshua Kushner’s Thrive Capital and was established as a permanent-capital business designed to acquire and operate companies over the long term rather than follow a traditional private equity exit model.

The company focuses on established service industries where it believes technology and artificial intelligence can improve operations, customer service and productivity.

More than 75 businesses across accounting, IT services and the built environment are already part of Thrive Holdings. ADT is expected to become the foundation of its smart home security business once the acquisition is completed.

ADT has been operating for more than 150 years and provides home security, monitoring and smart home services to residential and small business customers in the US.

Josh Kushner

ADT chairman, president and chief executive Jim DeVries said the transaction would provide the business with additional capital and technology expertise to support product development and improve the customer experience.

Thrive Holdings said its engineering teams would work alongside ADT employees to identify opportunities to improve products, services and internal operations through technology.

The companies also said ADT’s existing customer data and privacy policies would remain unchanged, with no new sharing of customer information without permission.

Financing for the transaction has been provided by funds managed by affiliates of Apollo Global Management.

The deal is expected to close during the first quarter of 2027, subject to ADT shareholder approval and US antitrust clearance.

ADT will continue operating independently until the deal is completed. Once finalised, the company will become privately held and its shares will stop trading on the New York Stock Exchange.

The agreement also includes a 30-day go-shop period, allowing ADT to consider competing acquisition proposals until November 28, 2026.

Thrive Holdings said the acquisition reflects its strategy of investing in established industries where technology can be used to improve long-term growth and customer service.