United States. ADT and Google announced a long-term partnership to create the next generation of smart home security offerings. The partnership will combine Nest's hardware and services, powered by Google's machine learning technology, with ADT's installation, service and monitoring network.
"We are thrilled to partner with Google to offer the smart home market a strong and differentiated offering of products and services that integrates the best technology, hardware and smart home security expertise from our two brands," said Jim DeVries, president and CEO of ADT. "Google's partnership and financial investment in ADT underscores the depth of our joint commitment to the security and smart home markets. Our entire leadership team looks forward to continuing our work with Google as we define the future of useful home security and build a productive long-term partnership."
"We are excited to partner with ADT to further our mission of building useful devices for the home," said Rishi Chandra, general manager and vice president of Nest.
Vision of the association
The partnership unites ADT's more than 20,000 professionals with Google's suite of useful home equipment, manufacturing technology and vertical technology.
ADT expects to offer certain Google devices to its customers starting this year and expand the integration in 2021. ADT+ Google's home security solution will use a secure platform for a seamless experience that prioritizes privacy and interoperability for greater customer peace of mind. and choice.
Strategic investment
Google will make a $450 million investment in ADT in exchange for shares of a newly created Class B common stock that has all rights and preferences to ADT's common stock, except the right to vote in the election, appointment or removal of directors. Following the closing of Google's equity investment in ADT, Google will own 6.6% of ADT's total outstanding common capital. Google's equity investment, which is subject to customary closing conditions, is expected to close in the third quarter of 2020. Revenue will be used to drive growth and reduce leverage over time.
Each company will commit an additional $150 million, subject to the achievement of certain milestones, which will be used for joint marketing, product development, technology, and employee training to promote the partnership. These investments are expected to accelerate ADT's efficient capital growth and drive greater consumer awareness and deeper product innovation for both companies in the fragmented but rapidly expanding smart home market.
