Apollo Global Management LLC (APO) has unveiled a $6.9 billion deal for leading home security company ADT Corp. (ADT). Terms of the deal, announced Tuesday, call for Apollo to pay $42 a share in cash for Boca Raton, Fla.-based ADT, a premium of 56% to the target's Friday close. Apollo intends to combine the company with Prime Security Services Borrower LLC, which does business as Protection 1, to create what the firm called a $15 billion home security giant. The agreement includes a 40-day go-shop period in which ADT and its board can actively solicit superior proposals. Apollo said its offer has fully committed financing in place, including $1.555 billion in new first lien term loans, $3.14 billion in new second lien financing and an equity contribution of about $4.5 billion from funds managed by Apollo. The deal also includes the issuance of $750 million in new preferred securities to an affiliate of Koch Equity Development LLC, a unit of privately-held Koch Industries Inc.