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Google to buy 6.6% stake in ADT in home security push

Credit: REUTERS/MIKE BLAKE

Alphabet Inc's Google is buying a 6.6% stake in home security firm ADT Inc for $450 million in a deal that will allow it to provide service to customers of its Nest home security devices.

Adds detail on investment

Aug 3 (Reuters) - Alphabet Inc's GOOGL.O Google is buying a 6.6% stake in home security firm ADT Inc ADT.N for $450 million in a deal that will allow it to provide service to customers of its Nest home security devices.

ADT said on Monday the companies will work to combine Nest products like cameras, thermostats, doorbells and alarm systems with ADT's installation, service and professional monitoring network.

ADT expects to offer certain Google devices to its customers beginning this year and to expand the integration in 2021.

Google will receive ADT shares of a newly created Class B common stock that will not have right to vote.

Each company will commit an additional $150 million, to be used for co-marketing, product development, technology and employee training, ADT added.

(Reporting by Subrat Patnaik in Bengaluru; Editing by Krishna Chandra Eluri and Saumyadeb Chakrabarty)

((subrat.patnaik@tr.com; Twitter: @Subrat_Patnaik;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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