Google said on Monday it will invest $450 million in ADT and work with the Florida-headquartered firm’s technicians to sell and install Google’s Nest family of smart home products.
As part of the long-term investment — which is granting Google a 6.6% stake in ADT — the two companies will first attempt to reach more individual consumers and small businesses, and then work on building and selling next-generation smart home security offerings, they said.
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 partnership will combine Nest’s award-winning hardware and services, powered by Google’s machine learning technology, with ADT’s installation, service and professional monitoring network to create a more helpful smart home and integrated experience for customers across the United States,” ADT wrote in a blog post.
ADT’s shares soared 38% in the pre-market trading on the announcement.
“We’re excited to partner with ADT to further our mission of building helpful devices for the home,” said Rishi Chandra, GM and Vice President of Nest, in a statement. “ADT is a leader in smart home security, and I look forward to working with the team to create innovative smart home security solutions that help everyone feel safe and protected.”
More to follow…