Google to buy stake in ADT in $450M Google Nest security deal
Announced on Monday morning, the deal, worth $450 million, will establish a long-term commitment to partnership with ADT and will give Google a 6.6% share of the company.
The move will combine Google Nest's hardware with ADT's installation, service, and monitoring. Google Nest customers will be offered both DIY and professionally installed security services.
"We're excited to partner with ADT to further our mission of building helpful devices for the home," said Rishi Chandra, GM and Vice President of Nest.
Google's purchase will include newly creates shares of Class B common stock, which grants them all the rights and preferences of ADT's commons stock. However, the company will not be able to vote on the election, appointment, or removal of directors. The deal is expected to close in the third quarter of 2020.
Both companies will commit an additional $150 million to be put toward co-marketing, product development, technology, and employee training.
"We are thrilled to partner with Google to provide the smart home market with a strong, differentiated product and service offering that integrates the best technology, hardware and smart home security expertise from our two brands." said Jim DeVries, President and CEO of ADT.
ADT plans to offer specific Google devices to its customers beginning this year, but the bulk of integration is scheduled to take place in 2021. It isn't yet clear what's going to happen to the "Blue by ADT" line of HomeKit-ready security cameras.
In January, Google pushed to migrate Nest users over to using Google accounts. The search company failed to support the Apple TV version of the Nest app properly by failing to allow migrated customers to log in on Apple's streaming set-top box.
The move will combine Google Nest's hardware with ADT's installation, service, and monitoring. Google Nest customers will be offered both DIY and professionally installed security services.
"We're excited to partner with ADT to further our mission of building helpful devices for the home," said Rishi Chandra, GM and Vice President of Nest.
Google's purchase will include newly creates shares of Class B common stock, which grants them all the rights and preferences of ADT's commons stock. However, the company will not be able to vote on the election, appointment, or removal of directors. The deal is expected to close in the third quarter of 2020.
Both companies will commit an additional $150 million to be put toward co-marketing, product development, technology, and employee training.
"We are thrilled to partner with Google to provide the smart home market with a strong, differentiated product and service offering that integrates the best technology, hardware and smart home security expertise from our two brands." said Jim DeVries, President and CEO of ADT.
ADT plans to offer specific Google devices to its customers beginning this year, but the bulk of integration is scheduled to take place in 2021. It isn't yet clear what's going to happen to the "Blue by ADT" line of HomeKit-ready security cameras.
In January, Google pushed to migrate Nest users over to using Google accounts. The search company failed to support the Apple TV version of the Nest app properly by failing to allow migrated customers to log in on Apple's streaming set-top box.
Comments
Luckily I dumped my Nest hardware when they were bought by Google and will never use a service like ADT. If a burglar wants to get into my house they will find a way to bypass any home security device and nowadays police are less likely to even respond to a call so why throw away money?
"Who ends up benefiting from Google spreading its tentacles into yet another area ..?"
Why are you exposed to Google seeking partnerships and expanding their business just like all other businesses do? Are there any other companies out there that you wish to see stay the same size or get smaller? Or is it just Google?
Also, as I mentioned on another post, collecting user data is perfectly legal. Which means ... that Google is far from the only company that does it. And that tons of other companies who do so are far less scrupulous. Google is a Fortune 25 company. They don't need data for any purpose other than targeting ads. However, the many other companies who would have paid just as much for access to data would not have used it for targeting ads. They would acquire the data and sell it because - unlike Google - they have no other real way of monetizing it.
On the surface it seems like a great idea to be more direct with consumers, the reality is that the rest of the industry drops your product in response.
The $Billions in "fines" were for competition reasons and not privacy violations. France did fine them a few million over privacy but they were stretching IMO, much as they have when Apple got a fine of over a $B for violating French competition law.
As soon as SimplySafe has home kit integration, I am switching over.
Also, the entire point of security monitoring is...when you’re not home. Your John Wayne BS won’t help you there.