Google is buying a 6.6 per cent stake in ADT Inc, a home security firm for US$450 million in a deal that would let it offer services to customers of its Nest home security devices.
ADT’s shares have doubled to US$17 in trading prior to Monday and were ready to open over its IPO price of US$14 since it went public in 2018.
Google and nest will be merging their products with its installation, service and professional monitoring network.
Jim DeVries, ADT Chief Executive Officer said that it will be linking devices such as Google Home Mini, Nest Thermostat and Nest Wifi to its control centre this year and in 2021, other Google devices as well.
Along with no voting rights, Google will be buying 54.7 million Class B shares of ADT that was recently made, for US$8.22 each.
Apollo Global Management LLC, a private-equity company backs ADT, and it owns 83.5% of the company.
ADT also said an extra US$150 million will be put in by each company for co-marketing, product development, technology and employee training.
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Image: ADT Security Sticker