ADT to Expand Residential Footprint

ADT Inc. has announced an agreement to acquire Sunpro Solar (Sunpro), ranked #2 for 2021 Top Residential Rooftop Solar Contractors[1] in the United States, for $160 million in cash plus approximately 77.8 million shares of ADT common stock, implying a total enterprise value of approximately $825 million, subject to certain adjustments. ADT will rebrand Sunpro to “ADT SolarTM” and enter the rooftop solar business to offer ADT customers a protected, connected and now powered home.

“With its strong focus on the customer, Sunpro is the perfect partner for ADT and a logical extension of our ecosystem, unlocking an integrated home experience that includes security, automation, and energy management,” said Jim DeVries, ADT president and CEO. “By combining a cash-flow-positive company in the high-growth solar space with ADT’s trusted brand, national footprint, and cross-sell potential, we can expand offerings to our customers and accelerate growth for both ADT and ADT Solar.

“We’re excited to offer consumers even more peace of mind by giving them the opportunity to power their homes with sustainable and affordable solar energy. Residential solar represents a $15 billion annual market, but still only in 3 percent of all U.S. homes,” DeVries said. “With more than 6 million ADT customers and our best-in-class sales force and marketing channels, we will be well-positioned to further scale ADT Solar while lowering customer acquisition costs and accelerating overall solar adoption. We believe we have the potential to grow ADT Solar into a multi-billion-dollar business over time as we meaningfully increase the accessibility and penetration of residential solar across America.”

Founded in 2008, Sunpro is a leading provider of rooftop solar systems in the United States. Sunpro markets, designs, sells, installs and maintains solar power systems on residential and commercial properties through their 3,600-person, full-time workforce of solar energy professionals with 56 locations in 22 states. The company has been growing quickly, with a 90 percent year-over-year increase in installs in 2020 and has a cash-flow-positive, asset-light business model with more than four consecutive years of positive EBITDA. The transaction price represents 10x estimated standalone next 12 months’ EBITDA.

The cash portion of the proceeds are expected to be used for debt reduction and sellers’ taxes. Nearly all of the sellers’ consideration is in ADT stock, reflecting their conviction in ADT’s future growth.

Sunpro founder Marc Jones and the Sunpro management team are expected to join ADT to help build ADT Solar into the U.S. rooftop solar industry leader.

Featured

  • Until We Meet Again

    A short three years ago we were all pondering whether to attend any tradeshows all thanks to COVID-19. Sorry to bring that nightmare up again, but it seems that little pandemic is in the rear-view mirror, and it’s time to meet again. Read Now

    • ISC West
  • Cyber Hygiene: What it Looks Like for IoT Devices

    Cyber Hygiene: What it Looks Like for IoT Devices

    For our second pillar about the Industrial Internet of Things (IIoT) Pillars of Security, we are going to discuss what cyber hygiene looks like for IoT devices. Read Now

  • ISC West Announces 2023 Keynote Series Speaker Lineup

    The International Security Conference (ISC), in collaboration with premier sponsor Security Industry Association (SIA), announced five of this year’s ISC West Keynote Series speakers. ISC West will kick off its annual conference on March 28 (SIA Education@ISC: March 28-30 | Exhibit Hall: March 29-31) at the Venetian Expo in Las Vegas, Nevada. Read Now

    • ISC West
  • Accelerating Security Modernization

    In recent years, the term “digital transformation” has been one of the most frequently used buzzwords across industries. On its most basic level, it refers to the reimagining of how an organization leverages its technology systems to improve business processes. Read Now

Featured Cybersecurity

New Products

  • ComNet NW1 Gen 4

    ComNet NW1 Gen 4

    ComNet, Communication Networks, is announcing the introduction of its Generation 4 line of NetWave® wireless products that offer greater performance and increased stability in applications where throughput and increased bandwidth is increasingly important. 3

  • Dinkle DKU Barrier Terminal Blocks

    Dinkle DKU Barrier Terminal Blocks

    New DKU screw type terminal blocks use a spring-guided system where the screws are integrated and captive within the terminal enclosure. These screws can be backed out so that ring- or U-shaped cable lugs can be inserted, without the possibility of losing the screw. 3

  • LiftMaster Garage Door Opener

    LiftMaster Garage Door Opener

    LiftMaster Transforms the Garage Door Opener Into a Sleek Smart Home Device That Does More Than Open and Close the Garage Door 3