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Google Investing In ADT for Smart Home Security; Nest Device Monitoring


Google and ADT are partnering to develop smart home security technology and services, the search giant and Top 200 MSSP say. The Google-ADT smart home security relationship includes these components:

  • Google ($GOOG) plans to invest $450 million in ADT stock, and will acquire a 6.6% ownership stake in the company. $ADT shares surged more than 50 percent in pre-market trading on the news, as of 6:50 a.m. ET on August 3.
  • Each company will commit $150 million for co-marketing, product development, technology and employee training.
  • The resulting products and services -- spanning Google Nest hardware and ADT's security monitoring services -- will include do-it-yourself and professionally installed security offerings.
  • ADT expects to offer certain Google devices to its customers beginning in 2020 and to expand the integration in 2021.

Google Investing In ADT: Executive Perspectives

Rishi Chandra, president, Google Nest
Rishi Chandra, GM and VP, Google Nest

ADT President Jim Devries

In a prepared statement, Jim DeVries, president and CEO of ADT said:

“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. Google’s partnership and financial investment in ADT underscores the depth of our joint commitment to the smart home and security markets. Our entire leadership team is looking forward to continuing our work with Google as we define the future of helpful home security and build a productive long-term partnership.”

Added Rishi Chandra, GM and VP Nest.

“We’re excited to partner with ADT to further our mission of building helpful devices for the home. ADT is a leader in smart home security, and I look forward to working with the team to create innovative smart home security solutions that help everyone feel safe and protected.”

Google’s equity investment in ADT is expected to close in the third quarter of 2020, the companies said.

Google Investing In ADT: Addressing Privacy Questions

Google and ADT say they will also focus on privacy and interoperability.

The statement is likely designed to appease government regulators -- who are concerned about Big Tech companies creating closed, proprietary ecosystems that threaten competition and/or consumer privacy issues.

Also, ADT Security Services faces a lawsuit that claims ADT Security Services spied on customers, the South Florida Sun Sentinel reports.

Google did not say whether ADT will leverage the fast-growing Google Chronicle security analytics platform.

ADT Managed Security Services Strategy

ADT is more than a consumer and home monitoring service. The company has introduced managed security services for homes and small businesses. Key moves include ADT in 2018 acquiring Secure Designs Inc. (SDI), a well-known MSSP and SonicWall partner that manages firewall equipment for small business customers. More recently, ADT has:

ADT is expected to announce Q2 2020 quarterly results on Wednesday, August 5, 2020.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.