The tech giant Google has acquired 6.6% ownership in ADT for $450 million, the Boca-based national home and business security firm has announced.
Each company will also commit an additional $150 million for co-marketing, product development, technology and employee training to advance the partnership, the companies said in a statement.
The long-term partnership is expected to combine Nest Hardware powered by Google’s machine-learning technology with ADT’s DIY smart home security systems. ADT expects to offer certain Google devices to its customers beginning this year and to expand the integration in 2021.
Google will make a $450 million investment in ADT in exchange for shares of a newly created Class B common stock, according to the terms of the deal. The share will have “all of the rights and preferences of ADT common stock except for the right to vote on the election, appointment or removal of directors. Google’s equity investment, which is subject to customary closing conditions, is expected to close in the third quarter of 2020,” according to the company announcement.
“Google’s partnership and financial investment in ADT underscores the depth of our joint commitment to the smart home and security markets,” Jim DeVries, president and CEO of ADT, said in the statement.
“We’re excited to partner with ADT to further our mission of building helpful devices for the home,” said Rishi Chandra, GM and vice president of Nest.
“These investments are expected to accelerate ADT’s capital efficient growth and drive broader consumer awareness and deeper product innovation for both companies in the fragmented yet rapidly expanding smart home market,” according to the companies.