AI for the alarm system: OpenAI partner Thrive buys ADT for $15.3 billion
Josh Kushner's Thrive Holdings is taking over US security provider ADT. OpenAI has a stake in Thrive and supplies the group's companies with AI technology.
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Holding company Thrive Holdings is acquiring ADT, the US provider of alarm systems and security services. It is paying $10 per share in cash, a premium of 45.6 percent over the October 27 closing price. That values ADT at about $7.6 billion, or $15.3 billion including debt. The purchase is financed by funds managed by investment firm Apollo. ADT shares rose about 34 percent on Thursday.
Thrive Holdings was spun out of Josh Kushner's venture firm Thrive Capital and owns more than 75 companies, for example in accounting and IT services, which it aims to modernise with AI over the long term. OpenAI is a partner and investor: the ChatGPT developer provides the group's companies with AI models, technology and its own engineers. Neither side has yet announced specific AI products for ADT; ADT is to form the foundation of the smart-home security business.
"We intend to build on that foundation by strengthening ADT's technology and product capabilities," said Thrive partner Kareem Zaki. The deal is expected to close in early 2027, subject to shareholder approval and US antitrust clearance. ADT may look for better offers until November 28. Customer data protection policies are to remain unchanged.