ADT (NYSE:ADT) is in the news Monday after announcing a partnership with Alphabet’s (NASDAQ:GOOGL,GOOG) Google.
The agreement between the two companies will have them working together on a new home security system. The system will be made up of Google’s Nest devices and run off of AI from the tech company. ADT’s part will have it handling installation and monitoring of the security systems.
An ADT new release notes that the agreement will have it adding certain Nest devices to its security offerings this year. The company plans to expand its offering further in 2021 and integrate more of Google’s devices into its security systems.
To go along with this agreement, Google is also investing $450 million into ADT. In return for its investment, Google will receive shares of a new Class B ADT stock. This stock will have the same rights as normal ADT stock but lacks voting rights. With these shares, Google will own a 6.6% stake in the company.
Jim DeVries, president and CEO of ADT, said this about the news.
“Google’s partnership and financial investment in ADT underscores the depth of our joint commitment to the smart home and security markets. Our entire leadership team is looking forward to continuing our work with Google as we define the future of helpful home security and build a productive long-term partnership.”
ADT stock was up 62.1% and GOOGL stock was down slightly as of Monday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
