ADT COMMERCIAL acquired by GTCR

GTCR acquired the commercial security, fire and life safety business unit of ADT for an enterprise value of , in a transaction announced in August 2023 and expected to close in the fourth quarter of the same year. The deal valued the commercial unit at an EV/Commercial Adjusted EBITDA multiple of including an estimated allocation of corporate costs. ADT had built the commercial segment within its wider portfolio of smart home and small business security operations. ADT planned to use the net after-tax cash proceeds of the transaction to reduce debt, lowering its net leverage ratio from 3.7 to 3.3 and generating cash interest savings expected to offset the impact of divesting the commercial business. The transaction was approved by ADT's board of directors and remained subject to closing conditions, including regulatory approvals. Citi and RBC Capital Markets acted as financial advisors to ADT, while Cravath, Swaine & Moore served as legal advisor. David Donnini, Managing Director and Head of Business & Consumer Services at GTCR, led the firm's involvement in the transaction. Following the closing, GTCR was to take control of the commercial security, fire and life safety platform, which served business customers with critical safety services. The acquisition marked a further step in GTCR's activity in the business and consumer services sector, following an earlier partnership with the ADT Commercial leadership team. The transaction was structured as a carve-out of the commercial unit from ADT's broader operations.