Google Finalizes Deal to Buy 6.6% of ADT

  • Sep 24, 2020

ADT has issued and sold in a private placement to Google 54,744,525 shares of Class B common stock, par value $0.01 per share, of the company, for an aggregate purchase price of $450 million. The shares of Class B common stock issued to Google represent approximately 6.6% of the issued and outstanding common stock of ADT on an as-converted basis. The company expects to use the net proceeds for further growth initiatives and to reduce debt over time.

The original announcement made in August set out the main details of the investment, which will see a close working partnership between Google and ADT, giving Google access to ADTs 6.5 million customer base and its skilled technicians, through which the two will offer Google's Nest series of products.

As a result, Google’s Nest hardware combined with ADT’s professional installation and monitoring service will create a fully integrated set of devices, software and services for the secure smart homes market.

Reuters is reporting that the investment gives ADT the backing of a high-profile technology partner and broadens its services business and in return, Google strengthens its presence as it competes with Amazon.com's AMZN.O Ring and Boston-based Simplisafe.

Blake Kozak principal analyst, Smart Home and Security Technology, Omdia, recently published an analysis on the potential short and long term implications of this move and he believes that this equity investment from Google could be the differentiator the industry was looking for to bring a tech company together with an alarm brand. This new partnership could be the initial step that disrupts the smart home and alarm monitoring markets.

ADT expects to offer certain Google devices to its customers this year, and expand the integration in 2021. The complete ADT + Google helpful home security solution will use a secure platform for a seamless experience that prioritizes privacy and interoperability for greater customer peace of mind and choice.

Each company will also commit an additional $150 million, subject to the achievement of certain milestones, to be used for co-marketing, product development, technology and employee training to advance the partnership. These investments are expected to accelerate ADT’s capital efficient growth and drive broader consumer awareness and deeper product innovation for both companies in the fragmented yet rapidly expanding smart home market.

Featured

  • Report: 47 Percent of Security Service Providers Are Not Yet Using AI or Automation Tools

    Trackforce, a provider of security workforce management platforms, today announced the launch of its 2025 Physical Security Operations Benchmark Report, an industry-first study that benchmarks both private security service providers and corporate security teams side by side. Based on a survey of over 300 security professionals across the globe, the report provides a comprehensive look at the state of physical security operations. Read Now

    • Guard Services

  • Identity Governance at the Crossroads of Complexity and Scale

    Modern enterprises are grappling with an increasing number of identities, both human and machine, across an ever-growing number of systems. They must also deal with increased operational demands, including faster onboarding, more scalable models, and tighter security enforcement. Navigating these ever-growing challenges with speed and accuracy requires a new approach to identity governance that is built for the future enterprise. Read Now

  • Eagle Eye Networks Launches AI Camera Gun Detection

    Eagle Eye Networks, a provider of cloud video surveillance, recently introduced Eagle Eye Gun Detection, a new layer of protection for schools and businesses that works with existing security cameras and infrastructure. Eagle Eye Networks is the first to build gun detection into its platform. Read Now

  • Report: AI is Supercharging Old-School Cybercriminal Tactics

    AI isn’t just transforming how we work. It’s reshaping how cybercriminals attack, with threat actors exploiting AI to mass produce malicious code loaders, steal browser credentials and accelerate cloud attacks, according to a new report from Elastic. Read Now

  • Pragmatism, Productivity, and the Push for Accountability in 2025-2026

    Every year, the security industry debates whether artificial intelligence is a disruption, an enabler, or a distraction. By 2025, that conversation matured, where AI became a working dimension in physical identity and access management (PIAM) programs. Observations from 2025 highlight this turning point in AI’s role in access control and define how security leaders are being distinguished based on how they apply it. Read Now

Most   Popular

New Products

  • EasyGate SPT and SPD

    EasyGate SPT SPD

    Security solutions do not have to be ordinary, let alone unattractive. Having renewed their best-selling speed gates, Cominfo has once again demonstrated their Art of Security philosophy in practice — and confirmed their position as an industry-leading manufacturers of premium speed gates and turnstiles.

  • HD2055 Modular Barricade

    Delta Scientific’s electric HD2055 modular shallow foundation barricade is tested to ASTM M50/P1 with negative penetration from the vehicle upon impact. With a shallow foundation of only 24 inches, the HD2055 can be installed without worrying about buried power lines and other below grade obstructions. The modular make-up of the barrier also allows you to cover wider roadways by adding additional modules to the system. The HD2055 boasts an Emergency Fast Operation of 1.5 seconds giving the guard ample time to deploy under a high threat situation.

  • Camden CV-7600 High Security Card Readers

    Camden CV-7600 High Security Card Readers

    Camden Door Controls has relaunched its CV-7600 card readers in response to growing market demand for a more secure alternative to standard proximity credentials that can be easily cloned. CV-7600 readers support MIFARE DESFire EV1 & EV2 encryption technology credentials, making them virtually clone-proof and highly secure.