ADT to Receive $1.2 Billion Equity Investment From State Farm

Paul, Weiss is advising funds affiliated with Apollo Global Management in a $1.2 billion equity investment by State Farm, the largest insurer of homes in the U.S., in ADT Inc., an Apollo portfolio company and a leading provider of smart home and small business security. Following the close of the transaction, State Farm will own approximately 15% of ADT.

In connection with State Farm’s equity investment, ADT will commence a self-tender offer for up to 133.3 million shares at $9 per share, to be funded by the proceeds from the State Farm equity investment. Apollo is providing a backstop on the self-tender offer from ADT to buy back $1.2 billion of shares. State Farm’s investment is expected to close early in the fourth quarter of 2022, subject to customary closing conditions.

The Paul, Weiss team includes, among others, M&A counsel John Godfrey; finance partners Danielle Penhall, Brad Finkelstein and Gregory Ezring; and capital markets counsel Christodoulos Kaoutzanis.