One of America’s best-known burglar alarm brands is about to fall into the orbit of the company behind ChatGPT. Thrive Holdings, a holding company spun out of Josh Kushner’s venture firm Thrive Capital and backed by OpenAI, has agreed to buy ADT in an all-cash deal announced on Thursday 29 October.
The offer is $10 per share. That values ADT’s equity at about $7.6 billion, and the total enterprise value, which includes the company’s debt, at $15.3 billion, according to the companies’ announcement as reported by Investing.com and TechCrunch.
A big premium and a soaring share price
The price is a 45.6% premium to ADT’s closing share price of $6.87 on 27 October, and 52.1% above its average over the previous 30 days. ADT’s board unanimously approved the agreement.
Investors liked it. Yahoo Finance reported that ADT shares jumped by about a third on Thursday afternoon to just under $10, on course for their highest close since August 2021.
The deal is being financed with commitments from funds managed by affiliates of Apollo Global Management, and it is not subject to a financing condition. Once completed, ADT will be taken private and its shares will stop trading on the New York Stock Exchange.
Why an AI-linked group wants a security firm
Thrive Holdings says it owns and runs more than 75 businesses, mainly in accounting, IT services and what it calls the built environment. Its pitch is to hold companies for the long term and modernise them with artificial intelligence.
OpenAI is both an investor in Thrive Holdings and a technology partner, TechCrunch reported, supplying AI models and technology as well as engineers who work directly inside the group’s companies.
The announcement said ADT “will form the foundation of Thrive Holdings’ smart home security business”. ADT, which employs more than 12,000 people, serves residential and small business customers in the United States.
What is missing so far is any detail of what AI-powered products will actually look like. TechCrunch noted that neither company has announced specific new AI security products, only that they intend to invest in and release new ones. ADT’s existing partnerships with Apple and Google are expected to continue. Thrive partner Kareem Zaki told Yahoo Finance the aim was for ADT’s teams to serve customers better with more actionable information.
The move comes as home security becomes a battleground for Big Tech. TechCrunch pointed out that Apple has recently entered the market with a smart home and security range developed with LG and Schneider Electric, while Amazon has refreshed its own line-up with new AI-powered cameras.
Questions over data and privacy
For customers, the obvious question is what happens to the huge amount of information an alarm company holds: addresses, entry codes, camera footage and patterns of when homes are empty. The deal announcements we reviewed did not set out any new data commitments, and ADT will continue operating independently until the deal closes. Privacy campaigners are likely to watch closely as Thrive and OpenAI’s role becomes clearer.
What happens next
The takeover is expected to complete in the first quarter of 2027. It still needs approval from ADT shareholders and US competition regulators, along with other customary conditions.
There is also a twist that could yet change the outcome. Under a so-called go-shop clause, ADT can actively seek rival offers until 28 November 2026, with a possible 10-day extension for some bidders. If a better proposal emerges, ADT can walk away from the Thrive deal, subject to the agreement’s terms.
For now, the deal is the clearest sign yet that the AI boom is moving off screens and into physical businesses, right down to the box on the wall by your front door.
This article is for information only and is not financial advice.
Sources
- TechCrunch: OpenAI-backed Thrive Holdings acquires ADT (29 October 2026)
- Investing.com: Thrive Holdings to acquire ADT for $7.6 billion in cash deal (29 October 2026)
- Yahoo Finance: ADT stock surges to 5-year high after Thrive Holdings agrees to $7.6 billion buyout deal (29 October 2026)
Featured image: photo by Alan J. Hendry on Unsplash.
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