Google Invests $450 Million in ADT for Smart-Home Distribution
- ADT shares skyrocketed as much as 100% on the partnership news
- Google Nest competes with Amazon’s Ring home security products
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Alphabet Inc.’s Google is buying a $450 million stake in home security firm ADT Inc., forming a partnership that could get the tech giant’s smart-home products in front of millions of new customers.
The deal gives Google a 6.6% stake in the Boca Raton, Florida-based ADT, the largest home security company in the U.S. with about 20,000 employees and more than 6 million customers. Google’s prowess in hardware design and software will give ADT access to technology it wouldn’t be able to build on its own. ADT will begin distributing Google’s Nest home products exclusively. Shares of ADT skyrocketed as much as 100% before pulling back somewhat. They were up 57% to $14.40 at 11:17 a.m. in New York. Google shares were little changed.