OpenAI-backed Thrive Holdings acquires ADT at $10 a share
Thrive Holdings has acquired the physical security company ADT, the companies announced on Thursday. The price is $10 per share, or about $7.6 billion in equity. Beyond equity, the total enterprise value of the deal is $15.3 billion, ADT said.
Thrive Holdings is the holding company spinout from Josh Kushner's VC firm Thrive Capital. It counts OpenAI as both a partner and an investor. Its stated mission is to hold other companies long-term and revitalize them with AI, and it says it currently holds over 75 companies. As a partner, OpenAI supplies AI models and technology, plus people known as forward-deployed engineers, to Thrive's companies.
Neither ADT nor Thrive announced which new AI-powered security products they will release. They did tease that the plan is to invest and release new products. The press release said: "ADT will form the foundation of Thrive Holdings' smart home security business."
TechCrunch frames the deal against a busy market. Apple has just entered the field with a new line of smart home and home security products made with LG and Schneider Electric. Amazon updated its smart home line, including new AI-powered home cameras. ADT already partners with Apple and Google and is expected to keep doing so. TechCrunch adds that some startups are offering AI dog robots as roving security guards. The article was updated to add ADT's current partnerships and to describe Thrive Holdings as a holding company.
Key facts
- Thrive Holdings bought ADT for $10 per share, about $7.6 billion in equity.
- ADT said the total enterprise value of the deal is $15.3 billion.
- Thrive Holdings is a spinout of Thrive Capital; OpenAI is its partner and an investor, and it says it holds over 75 companies.
- OpenAI supplies AI models, technology and forward-deployed engineers to Thrive's companies.
- No specific AI-powered security products were announced; the companies only teased plans to invest and release new ones.
Why it matters
This ties an OpenAI-linked holding company to the physical security company ADT. Thrive Holdings' model is to buy companies, hold them long-term and revitalize them with AI, and the press release calls ADT the foundation of its smart home security business. The timing matters too: TechCrunch notes that Apple and Amazon have both just made moves in AI-powered smart home and security products.
Who it affects
ADT shareholders, who are paid $10 per share. ADT's partners: it already works with Apple and Google and is expected to continue to. Competitors in smart home security, including the Apple line built with LG and Schneider Electric and Amazon's updated cameras. Thrive Holdings' portfolio of over 75 companies, which draw on OpenAI's models and engineers.
How to use it
There is nothing to use yet. No AI-powered security products, launch dates or investment amounts have been named. Anyone following the story should watch for the products the companies teased, and for how OpenAI's models and forward-deployed engineers show up in ADT's offering.
How solid is it
The acquisition, the $10 per share price and the $7.6 billion equity figure are reported as announced by the companies. The $15.3 billion enterprise value is ADT's own statement. The over 75 companies figure is Thrive Holdings' own claim. The only quote comes from the press release. The AI-security angle is mostly forward-looking: the products are unspecified.
Risks and caveats
No closing date, regulatory approval status or expected completion timeline for the deal is given. No premium over ADT's prior share price is stated. The source does not say how much OpenAI invested in Thrive Holdings or whether OpenAI is involved in the ADT deal financing. It also does not say how the enterprise value figure beyond ADT's statement was computed. The plan to invest and release new products is a tease, not a commitment with details.
“ADT will form the foundation of Thrive Holdings’ smart home security business”
— Thrive Holdings and ADT press release, as reported by TechCrunch