Google Finalizes Deal to Buy 6.6% of ADT

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

Featured Cybersecurity

Webinars

New Products

  • A8V MIND

    A8V MIND

    Hexagon’s Geosystems presents a portable version of its Accur8vision detection system. A rugged all-in-one solution, the A8V MIND (Mobile Intrusion Detection) is designed to provide flexible protection of critical outdoor infrastructure and objects. Hexagon’s Accur8vision is a volumetric detection system that employs LiDAR technology to safeguard entire areas. Whenever it detects movement in a specified zone, it automatically differentiates a threat from a nonthreat, and immediately notifies security staff if necessary. Person detection is carried out within a radius of 80 meters from this device. Connected remotely via a portable computer device, it enables remote surveillance and does not depend on security staff patrolling the area. 3

  • 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. 3

  • Automatic Systems V07

    Automatic Systems V07

    Automatic Systems, an industry-leading manufacturer of pedestrian and vehicle secure entrance control access systems, is pleased to announce the release of its groundbreaking V07 software. The V07 software update is designed specifically to address cybersecurity concerns and will ensure the integrity and confidentiality of Automatic Systems applications. With the new V07 software, updates will be delivered by means of an encrypted file. 3