ADT and Google partnered on a new line of smart-home-security solutions
By: TheStreet | August 3, 2020
• ADT and Google partnered on a new line of smart-home-security solutions. And Google will invest $450 million for a 6.6% stake in ADT.
ADT (ADT) shares jumped on Monday after the provider of security solutions said that it and Google (GOOGL) partnered on a new line of smart-home-security devices, software and services.
As part of the deal, the Boca Raton, Fla., company said, Google will invest $450 million for a 6.6% stake in ADT. ADT shares were trading up 69% at $14.54 in pre-market trading on Monday, while shares of Alphabet, Google's parent, were up 0.3% to $1,492.
The new offerings from the two companies will combine the Google Nest hardware and services -- backed by the Mountain View, Calif., internet-search, advertising and tech giant's machine-learning technology -- with ADT's installation, service and monitoring network.
ADT said it would offer certain Google devices to its customers beginning this year and then expand the integration next year.
The solutions line will be offered in both do-it-yourself and professionally installed versions, the companies said.
Google's $450 million investment in ADT will take the form of a new Class B common stock. The Class B will have the rights and preferences of ADT common stock except for the right to vote on the election or removal of directors.
The investment, subject to customary conditions, is expected to close in the third quarter. ADT said it would use the proceeds to build its business and reduce debt.
If the partnership reaches certain milestones, Google and ADT each will commit an additional $150 million for co-marketing, product development, technology and employee training. Read Full Story »»» DiscoverGold