Adt Inc. · NYSE:ADT
Adt — Merger or Acquisition (January 2020)
10 slides from Adt's merger presentation, Jan 7, 2020
Slide 1: ADT's Acquisition of Defenders
Exhibit 99.2 ADT’s Acquisition of Defenders January 6, 2020 Confidential, not for distribution or publication without express consent of ADTExhibit 99.2 ADT’s Acquisition of Defenders January 6, 2020 Confidential, not for distribution or publication without express consent of ADT
Slide 2: Forward Looking Statements and Non-GAAP Measures
Forward Looking Statements and Non-GAAP Measures ADT has made statements in this presentation and other reports, filings, and other public written and verbal announcements that are forward-looking and therefore subject to risks and uncertainties. ADT is continuing to review the potential impacts of
Slide 3: Acquisition Overview
Acquisition Overview 1 ▪ ADT acquired Defenders, its largest dealer, for approximately $381 million from the Lindsey family − The Lindsey family is taking nearly the entirety of their transaction consideration in the form of ADT stock (~16.3 million shares), demonstrating their conviction in the str
Slide 4: Defenders Acquisition Enables Capital Efficient Growth
Defenders Acquisition Enables Capital Efficient Growth 1 2 3 4 5 DRIVE DIY AND PURSUE INDUSTRY GROW COMMERCIAL MAXIMIZE LIFETIME FOCUS ON FCF OTHER INNOVATIVE, PARTNERSHIPS AND BUSINESS VALUE OF CUSTOMER LOW-COST GROWTH NEW OPPORTUNITIES Improve Attrition ▪ Improve Customer Experience ▪ Exit of Cana
Slide 5: Strategic Advantages of Defenders Acquisition
Strategic Advantages of Defenders Acquisition Unique opportunity to acquire ADT’s largest dealer to enhance customer experience, simplify the sales ecosystem, unify marketing, reduce customer acquisition costs, and generate FCF Enhances ▪ Provides ability to drive a unified brand message and premium
Slide 6: Financial Impact of Defenders Acquisition
1 Financial Impact of Defenders Acquisition Expected Key Metric Financial Impact Commentary ▪ Modest benefit from small population of accounts owned by Defenders not previously Monitoring & purchased by ADT Service Revenue Subscriber ▪ Reduction resulting from shift to direct model and elimination o
Slide 7: Overview of Defenders
Overview of Defenders 1 Business Overview Combined Geographic Coverage Defenders adds more than 3,000 incremental zip codes with approximately 70% overlap for total combined zip code Largest ADT dealer and the only dealer to coverage of ~21.1K be designated as an Authorized Premier Provider ADT Dire
Slide 8: Summary Transaction Terms
Summary Transaction Terms 1 Transaction Value ▪ ~$381 million purchase price ▪ Modestly beneficial to FCF and expected to accelerate growth in subsequent years Key Financial ▪ Elimination of dealer margin that currently goes to largest dealer partner Benefits ▪ Marketing efficiency expected to enabl
Slide 9: Appendix
AppendixAppendix
Slide 10: Non-GAAP Measures
Non-GAAP Measures To provide investors with additional information in connection with our results as determined in accordance with generally accepted accounting principles in the United States (“GAAP”), we disclose Adjusted EBITDA, Free Cash Flow, and Free Cash Flow before special items as non-GAAP