ADT skyrockets 97% after announcing it will partner with Google on smart home security products

REUTERS/Shannon StapletonA security sign for ADT is seen outside a home in Port Washington, New York, September 30, 2014.

Shares of ADT surged as much as 97% in premarket trading Monday after the company announced that it is partnering with Google to create smart home security offerings.

Google will invest $US450 million for a 6.6% ownership stake in ADT, securing a “mutual, long-term commitment to partnership,” according to a press release. Both companies will provide $US150 million for co-marketing, product development, technology, and employee training.

Read more:
A Wall Street quant chief breaks down why a COVID-19 vaccine is not the silver bullet investors have been hoping for – and warns another stock-market meltdown is likely

The partnership will combine Nest hardware and services with Google technology and ADT’s installation, service, and professional monitoring network, and is focused on residential and small business security. The products and services will be available for both do-it-yourself and professional installation.

ADT expects to offer customers certain Google devices this year, and will expand the integration in 2021, according to a statement.

ADT has surged roughly 9% year-to-date through Friday’s close.

Screen Shot 2020 08 03 at 8.13.27 AMMarkets Insider

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.