Tech

Google to buy a 6.6% stake in ADT in home security push, ADT shares nearly double

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ADT Securities sign
Shannon Stapleton | Reuters

Alphabet's Google is buying a 6.6% stake in home security firm ADT for $450 million in a deal that will allow it to provide service to customers of its Nest home security devices.

ADT shares skyrocketed following the announcement, and the stock was up as much as 97% in premarket trading.

ADT said on Monday the companies will work to combine Nest products like cameras, thermostats, doorbells and alarm systems with ADT's installation, service and professional monitoring network.

ADT expects to offer certain Google devices to its customers beginning this year and to expand the integration in 2021.

Google will receive ADT shares of a newly created Class B common stock that will not have right to vote.

Each company will commit an additional $150 million, to be used for co-marketing, product development, technology and employee training, ADT added.