Google, ADT partnering on home security products
Google is pairing its Nest smart home technology with ADT and buying a stake in the home security company.
ADT plans to begin offering Google devices to its customers starting this year. Shares of the company, based in Boca Raton, Florida, spiked 60% before the opening bell Monday.
Google will invest $450 million in ADT in exchange for newly created Class B shares that come with no votes in company elections, appointments or removal of directors. It's stake amounts to about 6.6% of the company.
Both companies will commit an additional $150 million, subject to the achievement of certain milestones, to be used for co-marketing, product development, technology and employee training to advance the partnership.