OpenAI-backed private equity firm Thrive Holdings will acquire home security company ADT in an all-cash deal valuing ADT at about 15.3 billion dollars in enterprise value, according to ADT’s own regulatory filing. ADT shareholders will receive 10 dollars per share once the deal closes.
What are the terms of the deal?
ADT disclosed the agreement in a Form 8-K filed with the US Securities and Exchange Commission, attaching the companies’ joint press release. The 10 dollar per share cash offer represents a 45.6 percent premium over ADT’s unaffected closing share price on October 27, 2026. The transaction values ADT’s equity at roughly 7.6 billion dollars, with total enterprise value, including debt, at about 15.3 billion dollars. ADT’s board approved the deal unanimously.
Once the acquisition closes, ADT will become a privately held company and, according to the companies’ statement, will “form the foundation of Thrive Holdings’ smart home security business.” Thrive has said ADT’s existing data protection and privacy policies will remain unchanged after the deal closes.
Who is Thrive Holdings?
Thrive Holdings is a private equity spinout of Thrive Capital, the venture capital firm led by Josh Kushner. TechCrunch reported that Thrive Holdings holds stakes in more than 75 companies and aims to own them for the long term, with OpenAI as a partner and investor that supplies AI models and forward-deployed engineers to help revitalize those businesses.
Neither Thrive nor ADT has detailed what AI-powered security products the two companies plan to launch together. Both companies said in their statement that they intend to invest in and release new products once the deal closes, without naming specifics. OpenAI’s role spans Thrive Holdings’ broader portfolio of more than 75 companies, not just this one acquisition, giving the AI lab a direct operational stake in how each of those businesses adopts its models.
Why is an OpenAI-backed firm buying a security company?
The deal lands as several large technology companies push into home security and smart home hardware. Apple has recently entered the category in partnership with LG and Schneider Electric, and Amazon has updated its smart home lineup with AI-powered cameras. Some startups are separately building AI-controlled robotic guard dogs for home and commercial security.
For Thrive and OpenAI, ADT offers an existing base of monitored home security customers and installation infrastructure that would otherwise take years to build from scratch. Layering AI models onto that physical footprint, for example in camera-based threat detection or automated monitoring responses, is the likely direction, though neither company has confirmed specific plans.
Has ADT changed hands before?
ADT has gone through private equity ownership before. Affiliates of Apollo Global Management acquired ADT in 2016 for 42 dollars per share, in a deal with an aggregate value of roughly 15 billion dollars that included the security company Protection 1, according to a statement from law firm Simpson Thacher, which advised on that transaction. ADT later returned to public markets in 2018.
The Thrive Holdings deal is structured differently from a conventional private equity buyout in one key respect: it comes with an AI partner, OpenAI, already attached as an investor and technology supplier to Thrive’s portfolio, rather than a financial sponsor alone looking to cut costs and resell the business later.
What happens next?
The acquisition still requires standard regulatory clearances and ADT shareholder approval before it can close. Neither company’s statement gave an expected closing date. ADT will continue trading and operating as a public company until the deal is finalized.
| Deal metric | Figure |
|---|---|
| Price per share | $10.00 cash |
| Premium over unaffected closing price (Oct 27, 2026) | 45.6% |
| Equity value | ~$7.6 billion |
| Total enterprise value | ~$15.3 billion |
| ADT board vote | Unanimous approval |
Frequently asked questions
Will ADT customers see any immediate change?
No. The companies’ statement says ADT’s existing data protection and privacy policies will remain unchanged, and the deal still needs regulatory and shareholder approval before closing, so ADT continues operating as usual in the meantime.
Is this an OpenAI acquisition?
No. OpenAI is a partner and investor in Thrive Holdings, supplying AI models and engineering support to Thrive’s portfolio companies, but Thrive Holdings, not OpenAI directly, is the entity acquiring ADT.
What will ADT shareholders receive?
ADT shareholders are set to receive 10 dollars per share in cash, a 45.6 percent premium over the stock’s unaffected closing price on October 27, 2026, according to ADT’s SEC filing.
What to watch next: whether Thrive and ADT name specific AI-powered security products once the deal clears regulatory review, and whether rival smart-home entrants such as Apple and Amazon respond with their own security-market moves.
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