It’s a good year to be ADT. After record sales thanks to coronavirus, the home security company has just received another boost, this time from Google, who announced that it will be investing $450 million.
This means big things not just for ADT and Google, but also for the home security industry.
Google Joins ADT Home Security
On August 3rd, Rishi Chandra, GM and Vice President of Google’s Nest, released an August 3rd statement regarding the merger.
“Together, we aim to create the next generation of the helpful home—based on new security solutions that will better protect and connect people to their homes and families,” he explains.
This historic merger gives Google a 6.6% stake in ADT. It is a deal that is expected to close in the third quarter of 2020, using shares of a brand-new Class B common stock. This gives Google all of the customary rights of ADT common stock, with the exemption of voting rights.
Google has already been in the security space as the owners of Nest, but these funds are specifically designated for future growth and expansion. It is a partnership that will, in time, birth a new all-inclusive service that combines Google’s tech with ADT’s security solutions, adding fresh innovation and support not only to residential customers but also to the small business sector.
Steve Orlowski, General Manager of Review Home Warranties, tells us exclusively, “No one can doubt Google and other tech companies are playing an increasingly prominent role within our physical homes. Even Google itself entered the smart assistance market when it released its Home Hub in 2016 and the more advanced Home Nest Hub in 2018,” he explains. “I see its recent investment in ADT as an extension of its in-home market strategy. Google doesn't just want to be a digital default in American households. It wants to be a physical one, too.”
About Google’s Products
In an effort to further simplify its products, Google has merged its home security options of Nest and Google Home into one with Google Nest.
Google Nest offers a DIY approach with an all-inclusive suite of home security products that include the following.
- Alarm systems
- Door locks
- Smoke and CO alarms
Google's technology also gives you integration with Google Assistant for voice control, giving you added convenience.
About ADT’s Services
ADT’s offerings aren’t too shabby, either. There are more than 6 million customers for residential, small business and commercial accounts.
In addition to complete security systems and home automation, ADT delivers all of the services you need to keep your monitoring systems in optimum shape.
- 24/7 professional monitoring
- 6-month money-back guarantee
- Monitored fire, flood and carbon monoxide detection
- Professional installation
There are also digital tools available to accompany its professional monitoring.
If you prefer to handle security yourself, you can go the DIY route with Blue by ADT. It is a contract-free, completely customizable approach to home security with self-installation for all of your alarms, sensors and cameras. With Blue, you also have the option to add on professional monitoring.
What to Expect
In addition to Google’s financial equity, each company has made a $150 million investment toward marketing, product development, technology and employee training.
“The new partnership will allow Google to merge their security tech further,” explains Laura Fuentes, Operator of Infinity Dish. “The goal is to provide users of the Nest with a higher level of security by enhancing cameras and screen displays. They hope to boost alerts for possible occurrences in and around the home and the decrease of false alarms.”
The announcement immediately led to a 97% jump in ADT stock, making for an all-around lucrative launch for both parties.
“The partnership pairs more than 20,000 ADT professionals together with Nest’s portfolio of helpful home devices,” explains Chandra. “The company’s network of thousands of professional technicians will be able to sell and install devices like Nest Cameras and Nest Hub Max, all powered by Google Assistant.”
With ADT bringing operations and logistics to the table, the possibilities are truly endless.
Orlowski sees big changes ahead. “There's a greater chance in the near future your home's entire ecosystem of smart devices will be synced up under Google-backed algorithms. Plus, Google touts some of the most effective machine-learning algorithms in the industry, which many believe promise a tidal wave of new applications inside the home. Your home will begin to pick up on your schedule and habits thanks to Google's advanced machine learning algorithms, hopefully minimizing false break-ins or alarms.”
Changes to Google Devices
Google’s lineup of trusted Nest products is now being introduced to ADT’s more than 6 million customers, all of whom can enjoy a whole array of smart devices, including cameras, doorbells, smart thermostats and alarm systems.
However, installation is not Google’s specialty. Where you previously had to handle installation and operation on your own, ADT now steps in to offer better hand-holding when you’re first getting started. ADT can also help with your systems over the long-term, so if you have issues, you can receive actual human support for all of your troubleshooting and tech support needs.
Existing Google Nest customers can look forward to benefiting from these ADT services:
- Professional monitoring
- Sales support
“Google is excellent at pushing technology forward and developing cutting-edge products,” claims Reuben Yonatan, tech CEO and founder of GetVoIP. “Their investment in ADT will allow customers to have the best of both worlds. They will enjoy the professional monitoring, installation and excellent service that ADT is known for, in addition to Google's top-level hardware and ever-improving security solutions that make use of machine learning.”
Google will also now be able to offer professional installation. Labor is no longer a concern, given its new access to the accumulated manpower ADT has in its arsenal.
“The partnership pairs ADT’s more than 20,000 professionals,” says Chandra. “ADT is a leader in smart home security, and I look forward to working with the team to create innovative smart home security solutions that help everyone feel safe and protected.”
Changes to ADT Devices
While Google benefits from ADT’s infrastructure and workforce, it has its own contributions, too, bringing independent, stand-alone products to the ADT lineup.
ADT already has its “Blue by ADT” security systems, which it has no intention of canceling, but now, the company will shift its focus to place a greater emphasis on nearly acquired, preexisting Google products and software.
“I think Google's latest investment will help integrate ADT’s devices into Google Homesuite,” muses Rostislav Shetman, Founder of 9Kilo Moving. “This is being done to reduce the number of false alarms and integrate Nest devices into the heart of Google’s operating systems. ADT customers will also have access to subscription services like ‘Nest Aware’ that offers intelligent alerts like package detection."
ADT now has the ability to benefit from new, improved technology with all the power of Google, while also giving its customers the option to save time and money with DIY installation.
“We are thrilled to partner with Google to provide the smart home market with a strong, differentiated product and service offering that integrates the best technology, hardware and smart home security expertise from our two brands,” said Jim DeVries, President and CEO of ADT.
Chandra echoes his new partner’s sentiments. “Over time, Nest’s devices, powered by Google's machine learning capabilities will enhance ADT's security monitoring and become the cornerstone of ADT’s smart home offering,” he says.
The Bottom Line
From tech expertise to smart home hardware, Google advances ADT considerably. ADT expects to offer certain Google devices to its customers beginning this year and expand its integration in 2021.
(Photo by Smith Collection/Gado/Getty Images)