In a joint announcement Tuesday, State Farm said it will make a $1.2 billion equity investment in ADT (NYSE: ADT), resulting in the insurance company owning approximately 15% of ADT. Additionally, ADT plans to partner with State Farm, and build upon its existing relationship with Google, with the intent to expand opportunities to combine next-generation security, innovative smart home technology and reimagined risk-mitigation capabilities to monitor, detect, prevent and optimize against homeownership risks.
State Farm will commit up to $300 million to fund product and technology innovation, customer growth and marketing. State Farm, which has 13.7 million customers with homeowner insurance, will become ADT's second-largest investor after Apollo Global Management.