Google to buy 6.6% stake in ADT in home security push

Joanna Estrada
August 5, 2020

By linking up with one of the leading home security providers, Google's going toe-to-toe with Amazon's Echo smart devices and Ring home security system. Aside from making their mark financially, the ensuing "multiyear partnership" that Chandra describes will see ADT professional installers across the country being partnered with "Nest's portfolio of helpful home devices".

San Francisco, Aug 4 (IANS) Google has announced a long-term, strategic partnership with ADT, a leading U.S. security and home automation provider, with infusion of $450 million into the company to develop secure smart home audio and video devices. ADT customers will also get access to the Nest Aware service that informs them about important events. Now, the company's moving to bolster those security chops even more with the help of the home-automation giants over at ADT.

Now, as Google announces a partnership with security firm ADT, we have a clearer picture of what Google's plans could be for the future of smart home security - and how its Home smart speakers with their always-on microphones may play a role. This investment grants Google a 6.6% stake in ADT.

Shares of home security business ADT (ADT) rose sharply on Monday after the company announced a $450 million investment from Google (GOOGL).

Google will buy 54.7 million newly created Class B shares of ADT for $8.22 each with no voting rights, the Boca Raton, Florida-based company said in a filing. The partnership has been signed as a long-term commitment from both companies.

"Later this year, we will begin integrating Google devices and make them available for installations to our customers", ADT Chief Executive Officer Jim DeVries told Reuters. This will provide customers with a sense of security, privacy, etc. Presumably, that means that Google's tech will replace ADT's own-branded cameras and doorbell, for example. Google's equity investment, which is subject to customary closing conditions, is expected to close in the third quarter of 2020. The company also sells its smart home devices in Canada and Europe.

Other reports by Click Lancashire

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