Thrive Holdings to acquire ADT for $7.6 billion, plans AI integration

Thrive Holdings, an investment firm supported by OpenAI, is acquiring the home security company ADT in an all-cash transaction valued at approximately $7.6 billion, according to The Verge. The acquisition is expected to close in the first quarter of 2027 and will result in ADT becoming a private company.

TechCrunch reported that the total enterprise value of the deal is $15.3 billion, with ADT being purchased at $10 per share. Thrive Holdings is a private equity spinout from the venture capital firm Thrive Capital and currently holds over 75 companies, aiming to revitalize them with AI technologies.

OpenAI is a partner and investor in Thrive Holdings, providing AI models, technology, and forward-deployed engineers to support the firm's portfolio companies. The acquisition of ADT is part of Thrive's strategy to build a smart home security business powered by AI.

Neither ADT nor Thrive Holdings have announced specific AI-powered products yet, but they plan to invest in and release new offerings in the home security sector. ADT already has partnerships with tech companies such as Google and Apple to sell and install smart home devices.

The acquisition reflects a broader trend in AI-powered physical security, with companies like Apple and Amazon introducing AI-enhanced home security products. Thrive Holdings aims to leverage AI to accelerate innovation and enhance customer experience in ADT's services, according to ADT's CEO cited by The Verge.