Google has many distribution deals with home builders and utility companies, but the ADT agreement is notable for its size and the fact that Google is taking an equity stake. — Reuters
Alphabet Inc’s Google is buying a US$450mil (RM1.90bil) 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 US with about 20,000 employees and more than six 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 US$14.40 (RM60.83) at 11.17am in New York. Google shares were little changed.
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