Apollo Global Management LLC (APO) has unveiled a $6.9 billion deal for leading home security company ADT Corp. (ADT). Terms of the deal, announced Tuesday, call for Apollo to pay $42 a share in cash for Boca Raton, Fla.-based ADT, a premium of 56% to the target's Friday close. Apollo intends to combine the company with Prime Security Services Borrower LLC, which does business as Protection 1, to create what the firm called a $15 billion home security giant. The agreement includes a 40-day go-shop period in which ADT and its board can actively solicit superior proposals. Apollo said its offer has fully committed financing in place, including $1.555 billion in new first lien term loans, $3.14 billion in new second lien financing and an equity contribution of about $4.5 billion from funds managed by Apollo. The deal also includes the issuance of $750 million in new preferred securities to an affiliate of Koch Equity Development LLC, a unit of privately-held Koch Industries Inc.
More from Video
How quickly do we find support, is what we'll want to know now, as the correction is occurring while economic optimism builds.
Despite the president's promise of no stimulus until after Nov. 3, there are no signs yet that this is the sort of correlated selling that leads to a deep correction.
Salesforce, Amgen and Honeywell will give a lift to the DJIA going forward.
CAG has hung onto the bulk of its recent gains, and could rise to the $50 area, according to the charts and indicators.