Apollo-Backed ADT Sells Stake to State Farm for $1.2 Billion (1)

State Farm Mutual Automobile Insurance Co., the largest US home insurer, agreed to make a $1.2 billion equity investment in ADT Inc., giving it a 15% stake in the security-services provider.

State Farm will acquire 133.3 million shares of ADT’s common stock at $9 per share, or 25% higher than Friday’s closing price, according to a statement Tuesday.

ADT will commence a self-tender offer for an equal number of its outstanding common and Class B stock at the same price, eliminating any dilution from State Farm’s investment, according to the statement. Funds managed by affiliates of Apollo Global ...