Simpson Thacher and Paul Weiss lead on $15bn Apollo-ADT deal

Paul Weiss Rifkind Wharton & Garrison has won its second Apollo-related mandate in a month, acting on the company’s billion-dollar acquisition of ADT Corporation.

The buyer, Apollo Global Management, turned to a New York team from Paul Weiss, with partners Taurie Zeitzer and Gregory Ezring leading for the firm.

They also advised Apollo’s alarm business Protection 1, which will be merged with security company ADT once the deal is completed in a deal valued at $15bn (£10.5bn).

The deal concerns the US and Canadian operations of ADT only, with the company seeking advice from Simpson Thacher & Bartlett partners Alan Klein and Anthony Vernace, both based in New York.

Partner Brian Gluck provided banking advice, with Kenneth Wallach and Rob Holo working on capital markets and tax issues respectively. Executive compensation and benefits partner Greg Grogan and IP partner Lori Lesser were also involved, alongside antitrust partner Peter Guryan, counsel Ellen Frye and environmental senior counsel Adeeb Fadil.

The ADT and Protection 1 merged company will remain based in Florida and generate an annual total revenue in excess of $4.2bn. The deal is expected to close in June 2016.

Background to the deal 

This is the second Apollo-related deal on which Paul Weiss has acted in less than a fortnight, as the firm previously worked on the purchase of BPP University College owner Apollo Education by funds affiliated with Apollo Global Management.

Paul Weiss’ involvement also follows its role in the acquisition of ASG Security and Protection 1 last summer, enabling Apollo to enter the security monitoring industry.

Meanwhile the target ADT had been controlled by Irish-based Tyco International from 1997 to 2011, when Tyco announced it would be separated into three independent divisions. ADT in the US and Canada has been a standalone business ever since, although ADT’s UK operations are still owned by Tyco. Simpson Thacher’s Klein is currently acting for Irish-based Tyco in its $20bn merger with Johnson Controls.