Key insights
- Home security company ADT has agreed to be acquired in an all-cash deal valued at $7.6 billion. The acquisition price represents a significant premium, likely driven by ADT's strong free cash flow yield and stable revenue. This development is positive for ADT shareholders who held positions in the company.
Home security giant ADT to be acquired for $7.6 billion in all-cash deal
The greater than 35% free cash flow yield they traded at for the past month, for a company with stable revenue (slow growth, but lower than the inflation rate) wasn't going to be ignored by market participants indefinitely.
I've been watching them for most of the past year, awaiting an even better deal. I was wrong to not nibble.