Today, ADT and Google announced they are entering into a long-term partnership in an effort to create the next generation of smart home security offerings. Company leaders say the partnership will combine Google Nest’s hardware and services with ADT’s installation, services and professional monitoring network to create a more robust smart home experience for customers.
“Today we start a new chapter in our company’s 145-year history with this terrific partnership announcement with Google,” said Jim Boyce, president and chief business development officer at ADT. “I’ve had a few really seminal blessings professionally, and I put today and this partnership in that rarified air. I think we have lightning in a bottle, and we’re going to be doing this for a long time together.”
The future ADT + Google home security solution will hopefully advance smart home offerings and attract new consumers seeking premium technology, end-to-end smart home services and trusted security.
“I see this as a real extension of the strategy we set for ourselves a couple years ago,” said Rishi Chandra, vice president of product and general manager of Google Nest. “I’ve been working in the home space for many years now, and one thing we found is that there is a huge emerging opportunity to rethink the home experience using AI, but the challenge is the way consumers experience the technology.
“We create these building blocks for the helpful home, but we ask consumers to put those blocks together. That’s where we see an awesome opportunity — combining our technologies with all the great services ADT is offering, from the installation and professional monitoring services to the consultation and support.”
For at least the start of the partnership, ADT and Google will be focusing exclusively on DIY, residential and small-to-medium sized businesses. The companies will be creating a smart home platform which they aim to make all-encompassing.
“The home, in my mind, has historically been siphoned off from innovation,” Chandra said. “It’s a big opportunity to shift from this isolated platform to an integrated platform that will bring together all of the different technologies so they can talk and sync with each other.”
To form this partnership, Google is making a $450 million investment in ADT in exchange for shares of a newly created Class B common stock having all the rights and preferences of ADT’s common stock except for the right to vote on the election, appointment or removal of directors. With this investment, Google will own 6.6 percent of ADT’s outstanding aggregate common equity. The investment is expected to close in Q3 2020. After the news of the partnership was announced today, ADT stock climbed to an all-time high of $17.21 a share.
“We’ve spent over a year talking with ADT about bringing our assets together,” Chandra said. “We felt this is a great way to start delivering a new end user experience for customers. Google has always found success through partnerships in whatever industry we’ve been in, so we think this is very consistent with that approach.”
“The ADT Google partnership is far reaching,” Boyce said. “It’s a long-term commitment by both companies, and it’s built to last.”