Google Partners With ADT, Stock Price Soars


ADT, a company known for its home and business security products, could be partnering with Google on smart home products. The announcement, which went out Monday morning, was followed by a huge spike in ADT’s stock price. Google, who is no stranger to the smart home business, already owns Nest and Google Home. As such, it’s no surprise that investors have high hopes for this partnership.

The announcement coincided with Google buying a 6.6% ownership stake in ADT. Set to the tune of a $450 million investment, this move is huge for the security company. ADT and Google have both agreed to commit $150 million for co-marketing of the products that result from their partnership. This will also cover the new employee training and product development.

Google Expands Smart Home Reach

This move is hardly surprising. Google’s existing smart home infrastructure is very popular, second only to Amazon’s Echo line of products. Moreover, Google made moves to acquire smart thermostat company Nest last year and rolled them into their ecosystem of smart home products. As such, it’s not surprising that Google would move to partner with other companies in a similar space.

Google’s smart home technology, known simply as Google Home, integrates smart technology with hub devices that allow for voice control of various home appliances. Moreover, by connecting these appliances to an internet-enabled hub, users can control aspects of their home’s electronics from smartphone apps. It’s not hard to see how home security devices can play into that.

ADT Partnership is Natural

ADT has already been a minor player in the smart home field. The company offers smart home tech in the form of lamp switches, automated lighting, internet-enabled security cameras and the like. By partnering with Google, ADT secures its place alongside the second-largest smart home technology company.

This partnership will likely entrench ADT’s home security products as being part of Google’s ecosystem. This, in turn, means that users thinking of using Amazon’s Echo products will have to weigh that against the benefits of getting ADT security devices for their smart home.

ADT’s stocks rose by one hundred percent Monday morning after news of the partnership broke. Investors are likely seeing the partnership as being mutually beneficially. However, it’s clear that ADT is the winner in this moment. Their shares are trading at an all-time high, over $17 per share. This reflects how much investors feel the Google partnership is a boost for the security company.