Published On: Fri, Feb 6th, 2015

Apollo Global Management Makes $1.5 Billion Bid For Protection 1

What makes Protection 1 attractive is that it also has a solar segment.

Protection 1

Apollo Global Management made a $1.5 billion bid to buy home security company Protection 1. However, Protection 1 has other suitors, including Ares Management and ADT Corp, according to Reuters. The company that owns Protection 1, GTCR may decide between these three prospective buyers, accept another bid or decide not to sell the company.

The security space is becoming a popular investment idea for private equity players. Blackstone purchased Vivint for $2 billion in November, and spun off Vivint’s solar sector into an IPO in 2014. What makes Protection 1 attractive is that it also has a solar segment, so it is possible that whoever buys the company may copy what Blackstone did and spin off the solar business. Protection 1’s solar business, Brite Energy partnered with MySolar and raised $250 million in financing.

Apollo Global is a joint venture between Leon Black’s  Apollo Group‘s and David Rubenstein’s Carlyle Group. The two partners invested $1 billion in Apollo Global. The Apollo invested roughly $801 million and owns 80.1% of the new company. Carlyle invested $199 million and controls the remaining shares. Apollo Global replaced Apollo International, according to Bloomberg.

 

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