ADT Files for IPO

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ADT has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering IPO). No pricing details were mentioned in the filing, but the offering is valued up to $100 million, although this number is usually just a placeholder. The company intends to list its shares on the New York Stock Exchange under the symbol ADT.

The underwriters for the offering are Morgan Stanley, Goldman Sachs, Barclays, Deutsche Bank, RBC Capital, Citigroup, Merrill Lynch, Credit Suisse, Imperial Capital, Academy Securities, Allen, Apollo Global Securities, Citizens Capital Markets, LionTree, SunTrust Robinson Humphrey and Williams Capital Group.

This is the leading provider of monitored security, interactive home and business automation and related monitoring services in the United States and Canada. Its mission is to help customers protect and connect to what matters most — their families, homes and businesses. The ADT brand is synonymous with security and is the most recognized and trusted brand in the industry.

A 2017 survey found that the ADT brand had approximately 95% brand awareness, and nearly half of ADT customers surveyed did not consider any other security alarm provider during their purchase process.

The company estimates that it is approximately five times larger than the next largest residential competitor, with an approximate 30% market share of the residential monitored security industry in the United States and Canada. Excluding contracts monitored but not owned, ADT currently serves approximately 7.2 million residential and business customers, making it the largest company of its kind in the United States and Canada.

In terms of its finances, the company reported:

In the nine months ended September 30, 2017 and the year ended December 31, 2016, we had total revenues of $3,210 million and $2,950 million, respectively, and net losses of $296 million and $537 million, respectively. In the twelve months ended September 30, 2017, we generated $4,007 million of monitoring and related services revenue and $2,308 million of Adjusted EBITDA.

ADT intends to use the net proceeds from this offering to repay its indebtedness with the remainder going toward working capital and general corporate purposes.