Alphabet Inc’s Google is buying a 6.6per cent stake in home security firm ADT Inc for US$450 million in a deal that will allow it to provide service to customers of its Nest home security devices.
After the company announced it would extend its coronavirus work-from-home order until summer 2021, a Google sign is shown at one of the company’s office complexes in Irvine, California, U.S., July 27, 2020.
REUTERS: Alphabet Inc’s Google is buying a 6.6per cent stake in home security firm ADT Inc for US$450 million in a deal that will allow it to provide service to customers of its Nest home security devices.
Shares of ADT nearly doubled to US$17 in trading before the bell on Monday and were set to open above their IPO price of US$14 for the first time since going public in 2018.
The companies will work to combine Google and Nest products with its installation, service and professional monitoring network, ADT said
The company will start linking popular devices like Google Home Mini, Nest Thermostat and Nest Wifi to its control center this year and other Google devices in 2021, ADT Chief Executive Officer Jim DeVries told Reuters.
Google will buy 54.7 million newly created Class B shares of ADT for US$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 83.5per cent of the company, according to Refinitiv data.
Each company will commit an additional US$150 million for co-marketing, product development, technology and employee training, ADT said.
