Google has announced it is investing $450 million in security company ADT, in a multi-year partnership that will give Google a 6.6% stake.
The deal is a win for both companies. Google benefits from ADT’s security expertise, not to mention its 20,000 professionals, who will soon be selling and installing Nest devices and services. ADT, on the other hand, benefits from Google’s AI-driven smart home developments.
“Over time, Nest’s devices, powered by Google’s machine learning capabilities will enhance ADT’s security monitoring and become the cornerstone of ADT’s smart home offering,” writes Rishi Chandra, Vice President and GM, Nest. “The goal is to give customers fewer false alarms, more ways to receive alarm events, and better detection of potential incidents inside and around the home. It will also provide people with more helpful notifications that make everyday life more convenient, like package detection. ADT customers will also have access to Nest Aware, a service that keeps people informed about important events at home, including intelligent alerts and event history recording for up to 30 days.”
Google has repeatedly been in the news lately, with its recent Fitbit deal under intense scrutiny in the US and the EU. Regulators are concerned with how Google will use the data it acquires from the wearables maker. It’s possible this scrutiny was a motivating factor in Google investing in ADT, rather than attempting to buy it or a competing firm outright. Whatever the motivation, it’s evident Google has high hopes for what the partnership will bring.
“Together, we aim to create the next generation of the helpful home—based on new security solutions that will better protect and connect people to their homes and families,” writes Chandra.