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

  • Meeting Modern Demands

    Door hardware and access control continue to be at the forefront of innovation within the security industry, continuously evolving to meet the dynamic needs of commercial spaces. Read Now

  • Leveraging IoT and Open Platform VMS for a Connected Future

    The evolution of urban environments is being reshaped by the convergence of Internet of Things (IoT) technology and open platform VMS. As cities worldwide grapple with growing populations and increasing operational complexities, these integrated technologies are emerging as powerful tools for creating more livable, efficient, and secure urban spaces. Read Now

  • Securing the Future

    Two security experts sit down with Security Today’s editor in chief Ralph C. Jensen to discuss what they see emerging and changing over the next several years along with how security stakeholders can harness these innovations into opportunities. Read Now

  • Collaboration Made Easy Using a Work Management Platform

    Effective collaboration between security operators, teams and other departments is critical to the smooth functioning of organizations. Yet, as organizations grow in complexity, it becomes more difficult for teams to coordinate with each other. This is compounded by staffing shortages, turnover and ineffective collaboration tools. Read Now

  • Creating a Safer World

    Managing and supporting locks and door hardware within a facility is a big responsibility. A building’s security needs to change over time as occupancy and use demands evolve, which can make it even more challenging. Read Now

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.

  • 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.

  • ComNet CNGE6FX2TX4PoE

    The ComNet cost-efficient CNGE6FX2TX4PoE is a six-port switch that offers four Gbps TX ports that support the IEEE802.3at standard and provide up to 30 watts of PoE to PDs. It also has a dedicated FX/TX combination port as well as a single FX SFP to act as an additional port or an uplink port, giving the user additional options in managing network traffic. The CNGE6FX2TX4PoE is designed for use in unconditioned environments and typically used in perimeter surveillance.