View source for ADT Inc.

{{short description|American security systems firm}}
{{use mdy dates|date=October 2021}}
{{Infobox company
| name = ADT Inc.
| former_name = The ADT Corporation
| logo = ADT Security Services Logo.svg
| type = [[Public company|Public]]
| traded_as = {{ubl|{{NYSE|ADT}}|[[Russell 1000 Index|Russell 1000]] component}}
| industry = {{ubl|[[Burglary]]|Fire and carbon monoxide detection|Health safety|Cybersecurity|[[security alarm|Security system]]s|[[communications system|Communication systems]]|[[closed-circuit television|Video surveillance]]|[[Access control]]|[[Radio-frequency identification|RFID]]}}
| founded = {{start date and age|1874|8|14}} (as American District Telegraph)<ref>{{Cite web |date=2023-08-14 |title=ADT celebrates its 150th Birthday in Baltimore! |url=https://www.wmar2news.com/local/adt-celebrates-its-150th-birthday-in-baltimore |access-date=2023-12-12 |website=WMAR 2 News Baltimore |language=en}}</ref>
| location = [[Boca Raton, Florida]], U.S.
| key_people = {{Unbulleted list
| Jim DeVries (Chairman and [[chief executive officer|CEO]])
| Donald Young ([[Chief operating officer|COO]])
}}
| owners = {{Unbulleted list
| [[Apollo Global Management]] (46%)
| [[State Farm Insurance]] (15%)<ref>https://www.wsj.com/articles/adt-draws-more-than-1-5-billion-of-new-investments-from-state-farm-google-11662463800</ref>
| [[Google]] (6%)
}}
| num_employees = {{circa|14,300}}
| num_employees_year = 2023
| parent = [[Tyco International]] (1997–2012)
| services = Security Services
| revenue = {{Decrease}} {{US$|4.98 billion|link=yes}} (2023)
| operating_income = {{Increase}} {{US$|510 million}} (2023)
| net_income = {{Increase}} {{US$|463 million}} (2023)
| assets = {{Decrease}} {{US$|16.0 billion}} (2023)
| equity = {{Increase}} {{US$|3.79 billion}} (2023)
| website = {{url|adt.com}}
| footnotes = <ref name= "Annual Report">{{cite web|url=https://www.sec.gov/ix?doc=/Archives/edgar/data/1703056/000170305624000020/adt-20231231.htm|title=2023 Annual Report|publisher=U.S. Securities and Exchange Commission|date=February 28, 2024}}</ref><ref name= "Ownership">{{cite web|url=https://www.sec.gov/ixviewer/ix.html?doc=/Archives/edgar/data/1703056/000119312524080742/d444238dpre14a.htm#toc444238_93|title=2024 Proxy Statement|publisher=U.S. Securities and Exchange Commission|date=March 28, 2024}}</ref>
}}
'''ADT Inc.''', formerly '''The ADT Corporation''', is an American security company that provides residential and small business [[security alarm|electronic security]], [[fire alarm system|fire protection]], and other related [[alarm device|alarm]] monitoring services throughout the United States. The corporate head office is located in [[Boca Raton, Florida|Boca Raton]], [[Florida]].<ref>{{cite web
| url        = https://www.bloomberg.com/quote/ADT:US/profile
| title      = Company Profile for ADT Corp
| website    = Bloomberg
| access-date = March 6, 2014
}}</ref> In February 2016, the company was acquired by [[Apollo Global Management]] for $6.9{{spaces}}billion in a leveraged buyout.<ref name=nytimes1>{{cite web|url=https://www.nytimes.com/2016/02/17/business/apollo-global-management-to-buy-adt-for-6-9-billion.html |title=ADT in $6.9 Billion Deal to Sell Itself to Apollo Buyout Firm |work=[[The New York Times]] |date=2016-02-02 |access-date=2016-02-19}}</ref> In January 2018, the company went public on the [[New York Stock Exchange]].<ref name="ipo-2018">{{cite news |last=Franklin |first=Joshua |date=18 January 2018 |title=Apollo-owned security firm ADT's IPO prices below target |url=https://www.reuters.com/article/us-adt-corp-ipo/apollo-owned-security-firm-adts-ipo-prices-below-target-idUSKBN1F804C |work=Reuters |access-date=2023-04-12}}</ref>
==History==
In 1863, [[Edward A. Calahan]] invented a [[Ticker tape|stock ticker]]<ref>[http://www.stocktickercompany.com/stc/history/ The History of the Stock Ticker] {{Webarchive|url=https://web.archive.org/web/20141225041242/http://www.stocktickercompany.com/stc/history/ |date=2014-12-25 }} Stock Ticker Company</ref><ref>{{cite web|title=Profile for Edward A. Calahan|url=http://invent.org/inductee-detail/?IID=255|website=National Inventors Hall of Fame|access-date=18 November 2014|archive-url=https://web.archive.org/web/20150109225745/http://invent.org/inductee-detail/?IID=255|archive-date=9 January 2015|url-status=dead}}</ref><ref>{{cite web|title=This Day in History: First stock ticker debuts|url=http://www.history.com/this-day-in-history/first-stock-ticker-debuts|website=History.com|access-date=18 November 2014}}</ref> and formed the '''Gold and Stock Telegraph Company''' in 1867 to exploit the technology.  Gold and Stock also developed a messenger system that sent instructions to and from the stock exchange floor.   Three years later, the president of Gold and Stock Telegraph Company woke up to a burglar in his home, which inspired him to create a telegraph-based alert system.  This system eventually connected 50 of his neighbors to a central station, where all the alert boxes were monitored.<ref>{{cite web|url=https://www.yourlocalsecurity.com/resources/adt-timeline|title=The History of ADT|website=www.yourlocalsecurity.com}}</ref> There were many small [[Telegraphy|telegraph]] delivery companies in the [[United States]] in the 19th century.
In 1874, 57 district telegraph delivery companies affiliated and became '''American District Telegraph''' ('''ADT''').  With the increase in telephone usage in the late 19th century, ADT's messenger business slowly declined in popularity.  ADT tried branching out and developing their signaling business while still maintaining their telegraph business as their primary income source.
ADT incorporated into [[Western Union]] in 1901 and separated its messenger business from its main signaling business at that time.  In 1909, Western Union and ADT came under the control of [[AT&T Corporation|American Telephone & Telegraph Company]] (AT&T). ADT began to expand into new areas, such as [[Fire alarm system|fire alarms]] and [[security alarm]]s, between 1910 and 1930, but was kept separate from AT&T's [[Edwin Holmes (inventor)|Holmes]] alarm business. ADT became a [[Public company|publicly traded company]] in the 1960s.<ref>{{Cite web|date=2020-08-03|title=ADT will partner with Google to provide a new home security system|url=https://www.consumeraffairs.com/news/adt-will-partner-with-google-to-provide-a-new-home-security-system-080320.html|access-date=2020-08-25|website=www.consumeraffairs.com|language=en}}</ref>
In 1964, ADT was found to be a monopoly in [[restraint of trade]].  It was shown to provide almost 80% of the central station alarm service in the United States. In some cities, such as [[New York City]] and [[Memphis, Tennessee]], they were the sole provider. They were also found to have forced competitors out of business by lowering prices below cost. They would charge national accounts very low prices in cities with competitors and much higher prices where no competition was available.  ADT was forced to adopt a national price list, which could not be varied, to help establish central station competitors in cities without competition and to pay fines and triple damages to the federal government, customers, and local competitors.<ref>{{cite web
| url        = https://minutemansecurity.com/adt-monopoly-national-price-list
| title      = ADT Monopoly National Price List
| website    = Minuteman Security Systems
| access-date = July 17, 2016
}}</ref>
In early 1987, the firm '''Hawley Goodall''', owned by [[Michael Ashcroft]], bought the [[Indianapolis]]-based '''Crime Control Inc.''', the fourth-largest company in the U.S. security market, for $50 million.  Later in the year, it bought ADT and moved to [[Bermuda]]. This purchase transformed Hawley into the leading security services business in the United States and resulted in the majority of its revenues coming from the North American market. As a result of the acquisition, Hawley changed its name to '''ADT Limited''' and decided to refocus its business around security services. At the end of 1987, the company sold its North American-based facility services business to Denmark's [[ISS A/S]].
In 1997, ADT was purchased by [[Tyco International]] in a [[reverse takeover]].<ref>{{cite web
| url        = http://www.adt.com/about-adt/history
| title      = Our History
| website    = ADT
| access-date = March 6, 2014
}}</ref>
===Broadview acquisition===
[[File:ADTHomeSecurity.jpg|thumb|Yard sign indicating the presence of an ADT system at a home]]
In January 2010, Tyco acquired [[brink's#Home security|Broadview Security]] (formerly Brink's Home Security), then ADT's largest competitor, for $2{{spaces}}billion. When the acquisition closed later that year, the Broadview name was discontinued, and Broadview's operations were integrated into ADT.
===Separation from Tyco and Apollo ownership===
[[File:Ford Transit Connect ADT.JPG|thumb|219x219px|ADT Service vehicle in Quebec, 2010]]
In September 2011, Tyco announced that it would split into three companies, ADT being one of the three.<ref>{{cite news |last1=Merced |first1=Michael J. de la |title=Tyco to Split Itself in 3, Hoping for More Value |url=https://dealbook.nytimes.com/2011/09/19/tyco-to-split-into-three-companies/ |work=New York Times DealBook |date=September 19, 2011 |language=en}}</ref> On October 1, 2012, ADT debuted as an independent public company and began trading on the New York Stock Exchange ({{New York Stock Exchange|ADT}}). In 2014, it acquired the Canadian company Reliance Protectron Security Services from [[Reliance Home Comfort]]<ref>{{Cite web |url=http://investors.adt.com/phoenix.zhtml?c=251389&p=irol-newsArticle&ID=1945722 |title=Press release |publisher=adt.com |access-date=October 6, 2016}}</ref> for a total of [[Canadian dollar|Can$]]555{{spaces}}million.<ref>{{Cite journal |date=June 2014 |title=ADT Agrees to Acquire Reliance Protectron Inc |url= |journal=SDM: Security Distributing & Marketing |volume=44 |issue=6 |pages=18–22}}</ref><ref>{{Cite journal |last=Collins |first=Allison |date=2014-05-05 |title=ADT Expands in Canada with $500M Acquisition |url= |journal=Mergers & Acquisitions Report |volume=29 |issue=18 |pages=7–7}}</ref>
In February 2016, [[Apollo Global Management]] acquired ADT for nearly $7{{spaces}}billion and merged it with another home security firm, Protection 1.<ref>{{cite web|url=https://www.usatoday.com/story/money/2016/02/16/home-security-firm-adt-acquired-apollo-global/80441846/|title=Home security firm ADT acquired by Apollo Global|website=USA TODAY}}</ref> The purchase price represented a premium of approximately 56 percent over ADT's closing share price on February 12, 2016, and when combined with Protection 1, represented an aggregate transaction value of approximately $15{{spaces}}billion.<ref>{{Cite journal |last=Scally |first=Tim |date=March 2016 |title=ADT to Be Acquired by Apollo, Combined With Protection 1 |url= |journal=SDM: Security Distributing & Marketing |volume=46 |issue=3 |pages=17–65}}</ref> The company went public again in January 2018 and again on the New York Stock Exchange under the ticker symbol ADT.<ref name="ipo-2018" /> As of 2023, Apollo still retains a majority share in ADT.<ref name="Ownership" />
In April 2018, ADT acquired Aronson Security Group Inc. and Acme Security Systems as part of its commercial expansion plans.<ref>{{Cite journal |last=Scally |first=Tim |date=April 2018 |title=ADT Bolsters Its Commercial Integration With 2 Acquisitions |url= |journal=SDM: Security Distributing & Marketing |volume=48 |issue=4 |pages=17–22}}</ref>
In October 2019, [[Telus Corporation]] purchased all of ADT's Canadian assets for $700 million.<ref>{{cite web| url = https://www.cbc.ca/amp/1.5305541| title = Telus buys Canadian operations of home security firm ADT for $700M}} </ref> By September 2020, Telus had renamed ADT's Canadian operations to Telus SmartHome Security.<ref>{{Cite web|url=https://www.adt.ca/media/en/home-security/limited-time-offer-SEM.php|title = Current Offer &#124; TELUS SmartHome Security}}</ref>
In August 2020, [[Google]] announced that it would invest $450{{spaces}}million in ADT in exchange for a 6.6% equity stake. The partnership will leverage ADT's network of installers to sell and install [[Google Nest|Nest]] devices, and aim to integrate Google's AI and Nest [[home automation|smart home]] devices into ADT's services.<ref>{{cite news |last=Singh |first=Manish |date=3 August 2020 |title=Google to invest $450M in smart home security solutions provider ADT |url=https://techcrunch.com/2020/08/03/google-to-invest-450m-in-smart-home-security-solutions-provider-adt/ |work=[[TechCrunch]] |access-date=2023-04-12}}</ref><ref>{{cite news |last=Chandra |first=Rishi |date=3 August 2020 |title=A partnership with ADT for smarter home security |url=https://blog.google/products/google-nest/partnership-adt-smarter-home-security/ |work=The Keyword |publisher=Google |access-date=2023-04-12}}</ref>
In November 2021, ADT announced an agreement to acquire Sunpro Solar, a residential [[rooftop solar power]] contractor, for $160{{spaces}}million in cash plus approximately 77.8{{spaces}}million shares of ADT common stock, implying a total enterprise value of approximately $825{{spaces}}million. The company was rebranded as "ADT Solar" and operates as a wholly owned subsidiary of ADT.<ref>{{cite news |last1=Griffin |first1=Joel |title=ADT enters solar market with acquisition of Sunpro |url=https://www.securityinfowatch.com/integrators/article/21245835/adt-enters-solar-market-with-acquisition-of-sunpro |work=www.securityinfowatch.com |date=November 9, 2021}}</ref> In January 24, 2024 ADT announced that due to financial difficulties they will be closing their solar division. <ref name="ADT Solar Closure">{{cite web |title=ADT provides solar business update and advances capital allocation strategy |url=https://newsroom.adt.com/corporate-news/adt-provides-solar-business-update-and-advances-capital-allocation-strategy |website=ADT Newsroom |publisher=ADT}}</ref>
In September 2022, [[State Farm]] announced that it would invest $1.2{{spaces}}billion in ADT in exchange for a 15% equity stake, and that it would commit up to $300{{spaces}}million to an "opportunity fund" to support ADT's marketing, technology, and innovation.<ref name="ins-journ">{{cite news |last=Sclafane |first=Susanne |date=7 September 2022 |title=State Farm Invests $1.2B in ADT; Adopts 'Predict and Prevent' Mindset |url=https://www.insurancejournal.com/news/national/2022/09/07/684025.htm |work=Insurance Journal |access-date=2023-04-12}}</ref> At the same time, Google separately announced it would commit a further $150 million into a "success fund" for ADT.<ref name="ins-journ"/>
ADT completed divesting its commercial security, fire and life safety business unit to private equity firm [[GTCR]] for $1.6&nbsp;billion in October 2023.<ref>{{Cite news |last=Jain |first=Aishwarya |date=August 8, 2023 |title=Security firm ADT's commercial unit to be taken private by GTCR for $1.6 bln |url=https://www.reuters.com/markets/deals/security-firm-adts-commercial-unit-be-taken-private-by-gtcr-16-bln-2023-08-08/ |publisher=Reuters}}</ref><ref>{{Cite web |last=Joseph |first=Irien |date=October 3, 2023 |title=GTCR wraps up ADT's commercial fire and security biz acquisition |url=https://www.pehub.com/gtcr-wraps-up-adts-commercial-fire-and-security-biz-acquisition/ |website=PE Hub}}</ref>
==Operations==
As of March 2019, ADT had nine monitoring centers and a network of more than 17,000 professionals, serving 6 million customers in over 200 locations throughout the United States.<ref>{{Cite web|url=https://www.adt.com/about-adt?_ga=2.115687686.1266155412.1562806198-948832312.1562564390|title=About ADT Company History {{!}} What is & Who Owns ADT|website=www.adt.com|access-date=2020-03-21}}</ref><ref>{{Cite web|url=https://news.adt.com/news-releases/news-release-details/adt-reports-fourth-quarter-and-full-year-2019-results|title=ADT Reports Fourth Quarter and Full Year 2019 Results|website=ADT LLC|access-date=2020-03-21}}</ref>{{Non-primary source needed|date=August 2020}}
== Controversies ==
On July 10, 2023, ADT disclosed that errors were identified in regards to their non-cash goodwill impairment losses associated with their Solar reporting unit and related tax impacts. These errors were identified during the third quarter of 2022 and the first quarter of 2023. As a result, the company announced that their financial results for the third and fourth quarter of 2022 and the first quarter of 2023 would be restated. Consequently, investors were negatively impacted as ADT's stock price decreased during trading, the following day.<ref>{{Cite web |last=Brasseur |first=Kyle |date=11 June 2023 |title=ADT discloses ICFR weaknesses related to impairment calculations |url=https://www.complianceweek.com/accounting-and-auditing/adt-discloses-icfr-weaknesses-related-to-impairment-calculations/33285.article |access-date=2024-06-03 |website=Compliance Week |language=en}}</ref>
== References ==
{{reflist}}
==External links==
* {{Official|https://www.adt.com}}
* {{Finance links
| symbol = ADT
| sec_cik = ADT
| google = ADT:NYSE
| yahoo = ADT
| bloomberg = ADT:US
| reuters = ADT
}}
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[[Category:Apollo Global Management companies]]
[[Category:Companies based in Boca Raton, Florida]]
[[Category:American companies established in 1874]]
[[Category:Technology companies established in 1874]]
[[Category:Companies listed on the New York Stock Exchange]]
[[Category:Fire detection and alarm companies]]
[[Category:Security companies of the United States]]
[[Category:1874 establishments in the United States]]
[[Category:2016 mergers and acquisitions]]
[[Category:2018 initial public offerings]]
[[Category:Corporate spin-offs]]
[[Category:Telegraph companies of the United States]]