ADT Locks up $1.5B in Investments From State Farm, Google

Security company ADT has secured a total of $1.5 billion in investments from insurer State Farm and Google, the company announced Tuesday (Sept. 6).

The bulk of that funding comes from a $1.2 billion equity investment from State Farm, which makes it a 15% owner of ADT, the company said in a news release.

“Additionally, ADT plans to partner with State Farm, and build upon its existing relationship with Google, with the aim to expand opportunities to combine next-generation security, innovative smart home technology and reimagined risk-mitigation capabilities to monitor, detect, prevent and optimize against homeownership risks,” the release said.

ADT said State Farm will also commit up to $300 million for product and technology innovation, customer growth and marketing. Meanwhile, Google will commit $150 million, subject to certain milestones, “to advance opportunities created by this type of innovation,” bringing its commitment to $300 million.

Learn more: ADT, Google Developing New Home Security Products, Services

Google and ADT formed a long-term partnership in 2020, an agreement that saw Google paying $450 million for a 6.6% stake in ADT.

“ADT’s partnership with State Farm creates the capability to drive innovation in homeowners insurance on a broad scale,” Jim DeVries, ADT president and CEO, said in the release. “By delivering a truly connected home, together we can improve the customer experience and provide more peace of mind.”

Earlier this year, ADT announced it was expanding its subscription-based security offerings beyond the home and into automotive and mobile phone-based safety programs.

See also: ADT Extends its Connected Security to Mobile, Automotive Applications

During its investor day event in March, the company’s leadership discussed several ways in which ADT has strengthened and reimagined its portfolio, exploring newer initiatives in automotive and mobile.

“As we craft our longer-term vision, we’re looking beyond the home, and it’s important for us to talk about the extension into providing safety and security for people — wherever they are,” Leah Page, vice president, emerging business and mobile at ADT, said at the time.