Shares of residential and commercial security provider ADT Inc. soared 38% in the premarket trade Monday, after the company announced a new venture with Alphabet Inc.'s Google to create the next generation of smart home security offerings. The partnership will build on Google's Nest's hardware and services, which will be combined with ADT's installation, service and professional monitoring network. Google will invest $450 million to acquire a 6.6% stake in newly created Class B common stock of ADT, in a deal expected to close in the third quarter. Both companies are committing $150 million for co-marketing, product development, technology and employee training. ADT has more than 20,000 people who will work with Google's suite of home hardware, manufacturing technology and vertical technology stack, the companies said in a joint statement. ADT is expecting to start offering Google devices this year and to expand the integration in 2021. A conference call to discuss the partnership will be held at 8.30 a.m. ET. ADT shares have gained 8.6% in the year through Friday, while the S&P 500 has gained 1.3%. Read More...
Shares of residential and commercial security provider ADT Inc. soared 38% in the premarket trade Monday, after the company announced a new venture with Alphabet Inc.’s Google to create the next generation of smart home security offerings. The partnership will build on Google’s Nest’s hardware and services, which will be combined with ADT’s installation, service and professional monitoring network. Google will invest $450 million to acquire a 6.6% stake in newly created Class B common stock of ADT, in a deal expected to close in the third quarter. Both companies are committing $150 million for co-marketing, product development, technology and employee training. ADT has more than 20,000 people who will work with Google’s suite of home hardware, manufacturing technology and vertical technology stack, the companies said in a joint statement. ADT is expecting to start offering Google devices this year and to expand the integration in 2021. A conference call to discuss the partnership will be held at 8.30 a.m. ET. ADT shares have gained 8.6% in the year through Friday, while the S&P 500 has gained 1.3%.
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