Google invests $450M in a security firm ADT, to drive Nest sales

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Google has greenlit a $450 million investment into ADT, a security company, in return for a 6.6% stake. The move is part of a deal to drive the sales on Google’s Nest devices. ADT was established back in 1874, making it one of the oldest security companies in the world.

They are known for their fire protection, alarm monitoring, and electronic security services. With operations spanning over 35 countries, they have a broad reach. ADT services about 80% of U.S. retailers, which gives Google the perfect playground to promote its Nest products. 

This strategic partnership will allow Google and ADT to create the next generation of home security solutions with newer and better features to protect users.

A whole new business

Rishi Chandra, Google’s vice president, and general manager of Nest said that the partnership would combine Nest devices, services, and technology with ADT’s outstanding presence in the security solutions market to build even better products.

The partnership brings together more than 20,000 experts from ADT and Nest’s portfolio of devices, to create a network of technicians who will sell and install them, powered by Google’s assistant.

Google acquired Nest for $3.2 billion back in 2014. Nest later became a separate entity when Alphabet was formed in 2015 as the parent company of Google’s several businesses.

Bad times, good times

The relationship was not very good back then, exacerbated by inefficient management under then CEO Tony Fadell. When he left in June 2016, Nest went back to direct ownership under Google with proper oversight by February 2018.

Since then, the relationship has seen progress with several debuts of products like Nest Hub Max in May 2019. Nest also makes smart speakers, smart displays, routers, smoke detectors, streaming devices, and other products. However, they are not as well-known as Google’s products.The deal with ADT will give Nest a boost.