If you haven’t heard, the massive home security company, ADT, has been sold for nearly 7 billion dollars! The news is undoubtedly stunning and will ultimately have a major impact on American homeowners, since the company is truly the top choice for most within the country. So, what brought about the change and where will the company go from here? Below, you’ll be able to find out!
At this point in time, the majority of Americans will be more than familiar with the ADT Corporation. This company has been in the home security game for over 142 years! They were originally founded in 1874 and provide homeowners and small businesses with fire protection and burglary prevention. The company offers an array of excellent services to residential consumers. Some of these will be listed below.
- Installation of home security systems
- Home health and companion systems
- Video surveillance for home owners
- Customized security system
The sale is surprising, since the company managed to increase their revenue several years in a row.
What Went Wrong?
There are innumerable changes, which have transformed the home security industry in the past few years. First and foremost, ADT was dealt a massive blow, by many of its traditional competitors, which include Slomin’s and Vivint. A few home security startups, such as Alarm.com, undoubtedly took a chunk of the market, as well. And, it is truly impossible to ignore the impact of cable and telecom companies, such as Comcast and AT&T, which have recently entered the market.
At the beginning of 2016, the company’s stock was down nearly 30% from its position the previous year. Also, the company’s quarterly sales missed their forecasts and ultimately disappointed investors. Both definitely had a major influence over the company’s demise. Finally, it is vital to remember that the DIY home security market has grown exponentially. More and more homeowners have decided to skip home monitoring systems, while opting to do it themselves.
If you were able to achieve the same task, without paying a monthly fee, why wouldn’t you? And so, Apollo Global Management enters the picture and scoops up the company.
About Apollo Global Management
Purchasing a company and restructuring it isn’t something new for Apollo Global Management. The private equity firm actually specializes in buyouts and purchasing distressed securities. At the end of the 2015, the company was responsible for managing over 162 billion dollars for their investors. The company owns a handful of notable companies, including CORE Media Group, Caesars Entertainment and Norwegian Cruise Line. To date, Apollo has confirmed that the company will continue using the ADT name and brand to market their products.
After The Acquisition
So, what can consumers expect to happen after the company is fully obtained by Apollo? Well, the acquisition process could be drug out to some degree, since the deal is subject to approval by shareholders. Still, it should be completed by June, which isn’t too far away. Current ADT customers most likely will not experience any changes right away and new customers will likely receive the same package deals as previously offered.
Until it happens and until changes are made, nobody will truly know, but one thing is certain, the ADT brand will not disappear into the sunset.
The post ADT Has Been Sold For 7 Billion Dollars – What To Expect appeared first on Trusted Home Security Research.