Google to buy 6.6% stake in ADT in home security push

[August 03, 2020] (Reuters) - Alphabet Inc's <GOOGL.O> Google is buying a 6.6% stake in home security firm ADT Inc <ADT.N> for $450 million in a deal that will allow it to provide service to customers of its Nest home security devices.

After the company announced it would extend its coronavirus work-from-home order until summer 2021, a Google sign is shown at one of the company's office complexes in Irvine, California, U.S., July 27, 2020. REUTERS/Mike Blake

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.

(Reporting by Subrat Patnaik in Bengaluru; Editing by Krishna Chandra Eluri and Saumyadeb Chakrabarty)

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