Google and ADT get together on smart home security
The partnership will combine Google Nest‘s smart home hardware and services, powered by Google’s machine learning technology, with ADT’s installation, service, and professional monitoring network and is intended to create “a more helpful” smart home and integrated experience for customers across the United States. The future ADT + Google helpful home security solution, say the companies, is expected to advance smart home offerings and attract new consumers seeking premium technology, end-to-end smart home service, and trusted security.
“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,” says 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.”
Rishi Chandra, GM and Vice President of Nest says, “We’re excited to partner with ADT to further our mission of building helpful devices for the home. 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.”
The partnership will pair ADT’s more than 20,000 professionals together with Google’s suite of smart home hardware, manufacturing technology, and vertical technology stack to offer customers an advanced, integrated “helpful” home security solution. The simplified yet innovative ADT + Google security solution, say the companies, will sit at the center of the new, helpful home, and advances in machine learning will transform the smart home security customer experience.
ADT say that it expects to offer certain Google devices to its customers beginning this year and to expand the integration in 2021. The complete ADT + Google helpful home security solution, say the companies, will utilize a secure platform for a seamless experience that prioritizes privacy and interoperability for greater customer peace of mind and choice.
As part of the partnership agreement, Google will make a $450 million investment in ADT in exchange for shares of a newly created Class B common stock having all of the rights and preferences of ADT’s common stock except for the right to vote on the election, appointment, or removal of directors. Upon the closing of Google’s equity investment in ADT, which is expected in the third quarter of 2020, Google will own 6.6% of ADT’s outstanding aggregate common equity. Proceeds will be used to fuel growth and reduce leverage over time.
Each company will 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, says ADT, are expected to accelerate its capital efficient growth and drive broader consumer awareness and deeper product innovation for both companies in the fragmented yet rapidly expanding smart home market.
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