ADT Inc ADT shares are trading higher Tuesday after the company announced it has secured investments totaling $1.5 billion from State Farm and Google.
State Farm will invest $1.2 billion in ADT at $9 per share, acquiring about 133.3 million shares or 15% of the company. State Farm will also invest up to $300 million in ADT to fund product and technology innovation and marketing and customer acquisition. The insurer will also get a seat on ADT’s board.
Alphabet Inc's GOOG Google, which already owns about a 6% stake in the company and previously committed $150 million toward engineering, designing and marketing of new products, has pledged up to $150 million more to fund product and technology innovation, customer growth and marketing.
"These new and expanded partnerships represent another bold step forward for our company and provide ADT more avenues to grow our customer base, strengthen brand loyalty and lower customer acquisition costs," said Jim DeVries, president and CEO of ADT.
ADT is a provider of monitored security, interactive home and business automation and related monitoring services in the United States and Canada.
ADT Price Action: ADT has a 52-week high of $8.97 and a 52-week low of $6.
The stock was up 15.8% at $8.35 at press time, according to Benzinga Pro.
Photo: Dave Dugdale from Flickr.
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