(Reuters) – Alphabet Inc’s (GOOGL.O) Google is picking up a 6.6% stake in ADT Inc (ADT.N) for $450 million, betting on the home security company’s strong customer base and an army of technicians to drive sales of its Nest devices.
ADT shares nearly doubled to hit a high of $17.2 and traded well above their IPO price of $14 for the first time since going public in 2018, briefly valuing the company at about $13 billion.
The investment gives ADT the backing of a high-profile technology partner and broadens its services business. In return, Google gets access to about 6.5 million customers, strengthening its presence as it competes with Amazon.com’s (AMZN.O) Ring and Boston-based SimpliSafe, among others.
ADT said on Monday that the two companies would work on ways to package popular Google products like Home Mini, Nest Thermostat and Nest Wifi with ADT’s