Google has agreed to buy a 6.6% stake in security-monitoring provider ADT for US$450 million, as part of the search-engine company’s effort to bolster its hardware business and capitalize on growth in the market for smart-home security products, reported the Wall Street Journal.
The two companies announced Monday, August 3, they would combine Google’s Nest hardware and services with ADT’s offerings. ADT sells security and automation systems to help detect intrusion and hazards such as smoke, fire, and flooding, and it employs personnel to react to alarms by relaying information to first responders.
ADT expects to offer some Google devices to its customers starting this year, and the companies will debut a jointly developed product in 2021, Jim DeVries, ADT’s president and chief executive, told analysts on a conference call. Each company is committing an additional US$150 million, subject to certain milestones, for joint marketing and product development, among other initiatives.
The partnership will help ADT compete better in the smart-home market, the company stated, adding that it will use transaction proceeds to expand its business and reduce debt. Google stated its machine-learning capabilities will support ADT’s smart-home offerings, aiming to provide fewer false alarms, more ways to receive notifications and better detection of potential incidents.
Full Content: Wall Street Journal
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Chamber of Commerce Sues to Overturn FTC Non-Compete Ban
Apr 24, 2024 by
CPI
FTC Chief Warns of Healthcare Price Fixing Risks Amid Tech Advancements
Apr 24, 2024 by
CPI
Amazon’s Investment in Anthropic Faces Antitrust Scrutiny
Apr 24, 2024 by
CPI
Italian Antitrust Authority Fines Amazon €10 Million for Unfair Trade Practices
Apr 24, 2024 by
CPI
Tuta Mail Raises Alarm Over Google Search Ranking Plunge Amidst DMA Rollout
Apr 24, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI