Source: Tanjug | Tuesday, 04.08.2020.| 09:02
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Google to Invest USD 450 Million in Home Security Company

Illustration (Photo: Rasulov/shutterstock.com)
Google is picking up a 6.6% stake in ADT for USD 450 million, betting on the home security company’s strong customer base and an army of technicians to drive sales of its Nest devices, Reuters reports.

The investment, it is added, gives ADT the backing of a high-profile technology partner and broadens its services business.

ADT shares nearly doubled to hit a high of USD 17.2 and traded well above their IPO price of USD 14 for the first time since going public in 2018.

ADT said on Monday that the two companies would work on ways to package popular Google products like Home Mini, Nest Thermostat and Nest Wifi with ADT’s strength in installation and maintenance, and later this year, they will begin integrating Google devices and make them available for installations to their customers, ADT Chief Executive Officer Jim DeVries told Reuters.

Google will buy 54.7 million newly created Class B shares of ADT for USD 8.22 each with no voting rights, the Boca Raton, Florida-based company said in a filing. ADT is backed by private-equity firm Apollo Global Management LLC, which owns 83.5% of the company, according to Refinitiv data.

The companies will commit an additional USD 150 million each for co-marketing, product development, technology and employee training, ADT said.
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