OpenAI-backed Thrive Holdings agrees to buy ADT for $7.6 billion to bring AI to home security
$10 a share in cash, a 45.6% premium. ADT would go private in early 2027, and says customer data won't be shared without permission.
The skim
- Thrive Holdings, the OpenAI-backed holding company spun out of Josh Kushner's Thrive Capital, agreed to buy home security giant ADT for $10 a share in cash: about $7.6 billion in equity value and $15.3 billion in enterprise value, which counts debt.
- The price is a 45.6% premium to ADT's $6.87 close on Oct. 27. ADT would go private, and the deal is expected to close in the first quarter of 2027 if shareholders and US antitrust regulators sign off.
- Thrive's pitch is to rework old-line businesses with AI. It says ADT's privacy policies won't change and no new data sharing will happen without customer permission.
What happened
ADT and Thrive Holdings announced the all-cash deal on Thursday, Oct. 29. ADT's board approved it unanimously. Financing comes entirely from funds managed by affiliates of Apollo Global Management, and the deal has no financing condition. ADT shares jumped about 34% that day to around $9.93, just under the offer price, Yahoo Finance reports.
Thrive Holdings is a permanent-capital company, meaning it buys businesses to hold and run for the long term rather than flip. It already owns more than 75 businesses in accounting, IT services and what it calls the built environment. ADT, with more than 12,000 employees, would become the foundation of a new Thrive smart home security business.
Why it matters
This is a big bet on a new kind of AI business model: instead of selling AI software to old-line companies, buy the companies and rebuild them from the inside. OpenAI is both an investor in and a partner of Thrive Holdings, supplying models, technology and forward-deployed engineers to its companies, TechCrunch reports. ADT brings a nationwide installation and service network that, in Thrive's words, "supports equipment in millions of homes."
Thrive has been specific about where it sees room to improve. In its own post on the deal, it says new technology could "help reduce false alarms and make notifications more informative," and spot equipment problems earlier. Neither company has announced new products, and ADT already partners with Apple and Google, per TechCrunch.
The obvious worry for customers is data. A home security company knows when you arm and disarm your system and who comes to your door. ADT says its "data and privacy policies will remain unchanged, and no new data sharing will occur without customer permission." Thrive partner Anuj Mehndiratta said the company is committed to "the highest standards of privacy and cybersecurity."
There's some history here too. Apollo, which is financing the buyout, took ADT public in 2018 at $14 a share and sold its remaining stake in May 2026 with the stock around $7, according to Investing.com.
What's next
ADT can shop for a better offer until 11:59 p.m. New York time on Nov. 28, with a possible 10-day extension for bidders who come forward during that window. It reports third-quarter results on Nov. 3 but won't take questions on the call because of the deal. Until closing, ADT keeps operating independently, and its stock will stop trading on the New York Stock Exchange once the sale is done.
Sources: ADT, Thrive Holdings, TechCrunch, Yahoo Finance and Investing.com.
