Insurance providers have long looked to the security industry to help it mitigate losses from intrusions and other life-safety calamities as well as generate new revenues. But Tuesday’s big announcement that ADT has secured investments totaling $1.5 billion from State Farm has industry insiders SDM spoke with foreshadowing much bigger things ahead in the realm of IoT penetration into the smart home.
Details of the partnership, including Google’s additional pledge of up to $150 million for engineering, designing and marketing of new products, can be viewed here. For Apollo Global Management, ADT’s largest shareholder since its acquisition in 2016, the deal represents a considerable return on its initial investment without hurting ADT’s stock price, said Brian Ruttenbur, managing director and equity research analyst at Imperial Capital.