Insurer State Farm will spend $1.2 billion to own 133.3 million ADT shares, or about 15% of the company and also put in up to $300 million to drive innovation at ADT, the press release by State Farm stated.
Separately, ADT said, Alphabet’s Google, a longtime investor, has agreed to put in an additional $150 million in the company. Back in September 2020, Google invested $450 million, acquiring a 6.6% stake in the security provider.
ADT’s (ticker: ADT) stock was up more than 12% to $8.15 shortly after the open Tuesday. The stock is down 3.7% so far this year.
The partnership aims to improve risk-mitigation for insured homeowners and offer customer benefits that may include lowered costs, State Farm said.
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