NEW YORK (CBSDFW.COM/AP) — Home security services company ADT has agreed to be purchased by affiliates of Apollo Global Management, the same company that bought former Irving-based Hostess Brands, for about $6.94 billion.
ADT Corp.’s stock surged more than 50 percent in Tuesday premarket trading.
ADT shareholders will receive $42 per share. That’s a 56 percent increase from Friday’s closing price of $26.87.
The companies said that ADT will be merged with a subsidiary of Prime Security Services Borrower LLC, which is also owned by Apollo.
The combined business will operate primarily under the ADT brand and be based in Boca Raton, Florida.
ADT has a 40-day period in which it can actively seek out alternative proposals.
ADT’s board has approved the acquisition, which is targeted to close by June. It still needs ADT shareholder approval.
Apollo Global Management also owns or is part owner of AMC Theatres and Sprouts Farmers Market grocery stores.
(©2016 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)