United States. ADT announced that, under the terms and conditions set forth in the previously disclosed Securities Purchase Agreement dated July 31, 2020, with Google, the Company issued and sold in a private placement to Google a total of 54,744,525 Class B common shares, valued at $0.01 per share for an aggregate purchase price of $450 million ("Private Placement").
The Class B common shares issued to Google represent approximately 6.6% of the Company's issued and outstanding common shares as converted. ADT expects to use the net proceeds from the Private Placement for new growth initiatives and to reduce debt over time.
The original announcement made in early August laid out the main details of the investment, which will see a close working partnership between Google and ADT, giving Google access to ADT's customer base of 6.5 million and its qualified technicians, through which the two will offer Google's Nest Product Series. As a result, Google's Nest hardware combined with ADT's professional installation and monitoring service will create a fully integrated set of devices, software, and services for the secure smart home market.
The investment gives ADT the backing of a high-profile technology partner and expands its services business and, in return, Google strengthens its presence while competing with AMZN. O Ring by Amazon.com and Boston-based Simplisafe, among others.
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