(Reuters) – Home and small business security firm ADT said on Tuesday it will sell its commercial security, fire and life safety unit to private equity firm GTCR for $1.6 billion.
ADT expects to use the net proceeds of about $1.5 billion from the deal to cut debt. Its shares rose as much as 1.3% in premarket trading.
“This transaction is mutually beneficial for ADT and ADT Commercial, which will benefit from GTCR’s support and expertise,” ADT CEO Jim DeVries said.
The sale is expected to close in the fourth quarter of 2023.
(Reporting by Aishwarya Jain; Editing by Savio D’Souza and Arun Koyyur)