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Google to Invest $450 Million in ADT

MOUNTAIN VIEW and BOCA RATON, FL —  Google is teaming up with ADT, one of the nation’s leading providers of security and smart home solutions. Google plans to invest $450 million to acquire 6.6% ownership in ADT,

The partnership will combine Google’s Nest security hardware and services, powered by Google’s machine learning technology, with ADT’s installation, service and professional monitoring network to create a more helpful smart home and integrated experience for customers across the United States.

The deal will integrate Google’s hardware and services and ADT’s DIY and professionally installed smart home security solutions to innovate the residential and small business security industry. The future ADT + Google helpful home security solution is expected to advance smart home offerings and attract new consumers seeking premium technology, end-to-end smart home service and trusted security.

ADT is a leading provider of security, automation, and smart home solutions serving consumer and business customers through more than 300 locations, 9 monitoring centers, and 20,000 security professionals in the United States.

“We are thrilled to partner with Google to provide the smart home market with a strong, differentiated product and service offering that integrates the best technology, hardware and smart home security expertise from our two brands,” said Jim DeVries, President and CEO of ADT. “Google’s partnership and financial investment in ADT underscores the depth of our joint commitment to the smart home and security markets. Our entire leadership team is looking forward to continuing our work with Google as we define the future of helpful home security and build a productive long-term partnership.”

“We’re excited to partner with ADT to further our mission of building helpful devices for the home,” said Rishi Chandra, GM and Vice President of Nest. “ADT is a leader in smart home security, and I look forward to working with the team to create innovative smart home security solutions that help everyone feel safe and protected.”

As part of its partnership, Google will make a $450 million investment in ADT in exchange for shares of a newly created Class B common stock having all the rights and preferences of ADT’s common stock except for the right to vote on the election, appointment or removal of directors.