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