Google Set to Invest $450 Million in ADT

ADT announced August 3 that Google will invest $450 million into the company. The deal will create a long-term partnership between the companies to develop smart home security offerings.

The $450 million investment gives Google 6.6 percent ownership in ADT. The deal is expected to close in the third quarter of this year.

The investment is in exchange for shares of a newly created Class B common stock. It will give Google all of the rights and preferences of ADT’s common stock except for the right to vote on the election, appointment, or removal of directors. Once Google’s equity investment closes, the company will then own a 6.6 percent stake in ADT.

The new partnership will combine Google’s Nest product with ADT’s installation, service, and monitoring network. The Google Nest is a smart home product which includes thermostats, cameras, doorbells, alarm systems, locks, and smoke and CO alarms.

The objective of the partnership is to create a more integrated home security system with more features. By raising the bar on home security systems, the companies hope to draw in more costumers.

“Over time, Nest’s devices, powered by Google’s machine learning capabilities will enhance ADT’s security monitoring and become the cornerstone of ADT’s smart home offering,” Google announced on its website.

ADT will be offering some Google devices to its customers beginning this year and continue to expand the integration in 2021.

In addition to the initial investment, both ADT and Google have agreed to commit an additional $150 million, subject to the achievement of milestones, to a variety of other projects surrounding the partnership. These efforts include co-marketing, product development, technology, and employee training.

“We are thrilled to partner with Google to provide the smart home market with a strong, differentiated product and service offering that integrates the best technology, hardware, and smart home security expertise from our two brands,” said CEO of ADT Jim DeVries.

The move will allow Google to expand its marketing of Nest services. Google has offered smart home security products under its Nest brand for several years after Nest Labs was initially founded in 2010, offering only its smart thermostat.

According to The Verge, the investment in ADT will give Google a more substantial presence in the smart home security market.

“We’re excited to partner with ADT to further our mission of building helpful devices for the home. ADT is a leader in smart home security, and I look forward to working with the team to create innovative smart home security solutions that help everyone feel safe and protected,” said Rishi Chandra, vice president of Nest.

ADT already has a presence in the smart home security market with a range of security cameras under its Blue by ADT brand. The company made a deal back in 2017 with Samsung to offer installation and monitoring its SmartThings security system.

When asked about the future of these existing services, a spokesperson for ADT said, “We will continue to iterate on our existing platforms as it relates to interoperability with Google devices.”

+ posts


Share on facebook
Share on twitter
Share on linkedin
Share on email

Subscribe to get the latest consumer news

More consumer News