Apollo Global Management said it would acquire home-security monitoring company ADT Corp. for about $6.9 billion, agreeing to the biggest leveraged buyout of the year.
Apollo will pay $42 a share in cash for the Boca Raton, Fla.-based company, according to a statement Tuesday. That’s 56 percent above the Friday closing price for ADT, which was spun off by Tyco International Ltd. in 2012.
The private-equity firm is planning to boost its offerings in the expanding home-security industry by combining ADT with an existing business, Protection 1.
ADT surged 48 percent to $39.64 at the close in New York, the biggest one-day gain since going public.
With 24 percent of ADT’s available shares borrowed, short interest in the company is more than six times the average of companies in the Standard & Poor’s 500 Index, according to Markit Ltd. Apollo rose 5.4 percent to $14.12.
