Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Home security company ADT (NYSE:ADT) announced on Monday morning that Alphabet Inc (NASDAQ:GOOGL) will invest $450 million in the company to acquire a 6.6% stake.
The companies are joining forces that will see Google’s award-winning Nest hardware combine with ADT’s security and monitoring service to create a set of fully integrated devices, software and services for secure smart home’s.
After the partnership was announced, shares in ADT skyrocketed as much as 98% premarket. They are currently trading at $16.48 per share, up 91.41%. Shares in Alphabet are little moved, up just 0.14% premarket.
“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,” said Jim DeVries, President and CEO of ADT.
ADT’s announcement went on to say that each company will commit an additional $150 million to the partnership, subject to the achievement of specific milestones, that will be used for marketing, product development and technology training.
ADT will also offer Google devices to its customers this year as part of the partnership.
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