About This Deal

ADT acquired Defenders (Defender Holdings, Inc.) for Approximately $290 million total consideration (cash paid of ~$173 million net of cash acquired plus the issuance of ~16 million ADT shares valued at ~$114 million), a transaction completed in January 2020, structured as combination (cash plus stock).

Defenders (Defender Holdings, Inc.) operates in Consumer and Small Business (dealer channel brought in-house), is based in Indianapolis, Indiana / United States. Defender Holdings, Inc. ('Defenders') was ADT's largest independent authorized dealer prior to the acquisition. In January 2020 ADT acquired Defenders and its direct-to-consumer digital sales and installation operations, bringing its largest dealer's sales, marketing and installation capabilities in-house.

Acquiring its largest independent dealer gave ADT direct ownership of a major sales and installation channel and its digital customer-acquisition capabilities.

Largest independent ADT dealer with an established direct-to-consumer digital sales and installation engine. In-housing the dealer's sales, marketing and installation lowered dealer-channel costs and gave ADT direct control of a major customer-acquisition channel. Integrated into ADT's consumer and small business operations.

Deal Terms

Acquirer
ADT
Target
Defenders (Defender Holdings, Inc.)
Value
Approximately $290 million total consideration (cash paid of ~$173 million net of cash acquired plus the issuance of ~16 million ADT shares valued at ~$114 million)
Date
January 2020
Type
Full acquisition
Status
Ready

Transaction Details

Target HQ
Indianapolis, Indiana / United States
Segment
Consumer and Small Business (dealer channel brought in-house)
Structure
Combination (cash plus stock)
Closed
January 6, 2020
Synergies
In-housing the dealer's sales, marketing and installation lowered dealer-channel costs and gave ADT direct control of a major customer-acquisition channel.

In Their Words

In January 2020, we acquired Defenders for total consideration of approximately $290 million, which consisted of cash paid of $173 million, net of cash acquired, and the issuance of approximately 16 million shares of our Common Stock with a fair value of $114 million. Defenders was our largest independent dealer prior to the Defenders Acquisition.ADT Inc. FY2021 Form 10-K, Acquisitions and Dispositions

Advisors

Advisory firms were not disclosed for this transaction.

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Sources: Press release ↗

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