ADT (NYSE: ADT) announced Thursday it has closed a $1.2 billion equity investment by State Farm. The transaction, first announced Sept. 6, results in the insurance company owning approximately 15 percent of ADT. 

In addition to the equity investment, State Farm committed up to $300 million to fund product and technology innovation, customer growth and marketing activities in connection with the partnership. State Farm has funded the first $100 million and the two companies will collaborate to approve initiatives utilizing the funds. 

ADT sold in a private placement to State Farm 133.3 million shares of ADT common stock for a gross purchase price of $1.2 billion. 

“We’re excited to begin innovative work with State Farm to develop new technology, products, and services that create safer, smarter and more protected homes while improving the overall customer experience for millions of homeowners,” said Jim DeVries, ADT president and CEO. “Our partnership with State Farm perfectly illustrates ADT’s mission and long-term strategy, shared during our Investor Day in March, to deliver safe, smart and sustainable solutions through innovative offerings, unrivaled safety and premium experiences.” 

As part of the equity investment, State Farm obtained a seat on ADT’s Board of Directors. State Farm has designated Paul Smith, executive vice president and chief operating officer, as their representative. Smith has joined the ADT Board of Directors as a Class II director with a term expiring at the 2025 annual meeting. 

Google is also increasing an existing relationship with ADT and is putting in an additional $150 million for connected home investments. Google parent Alphabet owns the Nest smart home brand of thermostats and other connected products. Google bought a 6 percent stake in ADT in 2020. 

Related: Insiders Say ADT, State Farm Deal Could Be a Boon for Industry

ADT said it would repurchase up to 133.3 million shares of common stock in its tender offer that commenced on Sept. 12. ADT will fund the repurchase of its common stock with the proceeds of the State Farm investment and pay the fees and expenses in connection with the tender offer with available cash, according to then announcement. 

State Farm, which has 13.7 million customers with homeowner insurance, is now ADT's second-largest investor after Apollo Global Management.