Google to invest $450M in smart home security solutions provider ADT

Joanna Estrada
August 4, 2020

ADT's shares more than doubled in the pre-market trading on the announcement.

"The goal is to give customers fewer false alarms, more ways to receive alarm events, and better detection of potential incidents inside and around the home", he wrote. ADT focuses on home security products such as electronic security, fire protection, and alarm monitoring services. Shares in Alphabet are little moved, up just 0.14% premarket. The three tech giants are locked in a battle for prime placement in people's homes, designing appliances centered around their unique voice assistants. ADT Chief Executive Officer Jim DeVries said "the combined solution will unlock access to new customers seeking premium technology, end-to-end smart-home services and trusted security".

Until now, ADT hasn't favoured one company's products over another.

"We will exclusively support Nest products", DeVries said, adding that the companies will build products together and start rolling them out next year.

Both companies have also committed $150 million each - provided they reach certain milestones - for co-marketing, product development and investment in technology and employee training.

The U.S. smart-home market is experiencing "explosive gains", DeVries said and is projected to grow 20% annually.

According to a blog post from Nest Vice President Rishi Chandra, the company will be pouring $US450 ($632) million dollars into ADT, effectively becoming an owner of roughly six and a half per cent of ADT's stock. The deal would make Google ADT's second-largest shareholder, behind Apollo Global Management, the private equity firm that took over ADT in 2016 and helped organise an initial public offering.

Google entered the smart-home market when it bought Nest in 2014 for $3.2 billion.

Google will own 6.6 percent of ADT after the deal is concluded later in 2020.

Other reports by Click Lancashire

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