OpenAI-backed Thrive to acquire ADT in a $15.3B deal

Thrive Holdings, the private-equity spin-out from Josh Kushner’s venture firm Thrive Capital, has acquired physical security company ADT, the two companies announced on Thursday. Thrive Holdings counts OpenAI as both a partner and an investor, and its stated mission is to hold other companies for the long term and revitalise them with AI. The deal values ADT at $10 per share, or roughly $7.6 billion in equity, with a total enterprise value of $15.3 billion when debt and other non-equity items are included, ADT said. No further details about the transaction, such as post-close plans or operating arrangements, have been disclosed yet. Thrive Capital was founded by Josh Kushner, a prominent Silicon Valley investor, and the spin-out has drawn attention partly because of its close relationship with OpenAI, which has positioned itself not only as a technology provider but also as an investor in companies applying AI across industries. ADT is one of the largest home-security and monitoring providers in North America, serving millions of households through monitored alarm systems, installation services and related devices. The transaction marks one of the larger acquisitions in the physical-security sector in recent years and reflects the growing appetite among AI-focused investors for companies that can serve as platforms for deploying AI into everyday consumer and enterprise services. Under the agreement, ADT shareholders will receive $10 per share in cash, a price that represents a significant premium over where ADT traded before the deal was announced. The transaction is expected to be financed through a combination of equity from Thrive Holdings and its investment partners, as well as debt financing, though the full financing structure has not been detailed. Thrive Holdings said it plans to operate ADT as a standalone business while exploring ways to integrate AI into its security offerings, though specific product plans have not been revealed. OpenAI’s role in the acquisition, beyond its investment in Thrive Holdings, has not been elaborated on, and it is not clear whether OpenAI will provide any technology or research support to ADT post-close. The announcement was made jointly by Thrive Holdings and ADT on Thursday, with both companies framing the deal as a long-term partnership aimed at transforming ADT’s business using AI. No timeline for closing has been provided, and further details may be announced in the coming weeks.