State Farm has a $1.2 billion investment. ADT(ADT), a transaction that gave State Farm a 15% stake in the company. State Farm is buying his ADT shares at a price of $9, which is about 25% higher than Friday’s closing price.
State Farm also said it would specifically commit $300 million to fund product innovation and marketing.
ADT President and CEO Jim DeVries said in a press release:
State Farm Chief Operating Officer Paul Smith said in a release that the deal with ADT will enable State Farm to move from a ‘repair and replace’ model to a ‘predict and prevent’ mindset for smart homes. We will have the opportunity to provide the technology,” he added. As part of the investment, Smith will join ADT’s board of directors.
Tech giant Google is also expanding its existing partnership with ADT, committing an additional $150 million to invest in the connected home. Parent of Google alphabet(Google) owns the Nest smart home brand of thermostats and other connected products.Google Bought a 6% stake in ADT in 2020.
Rishi Chandra, vice president and general manager of Google Nest, said in a statement: “Working with ADT is about building the next generation of smart home security solutions.”
The State Farm-Google transaction is also blessed by the private equity firm that is the majority shareholder of ADT. Apollo Global Management(appointment).