12.78 +0.03 (0.24%)
Before hours: 9:05AM EDT
|Bid||0.00 x 1800|
|Ask||0.00 x 1400|
|Day's range||12.56 - 13.82|
|52-week range||3.40 - 17.21|
|Beta (5Y monthly)||2.28|
|PE ratio (TTM)||N/A|
|Earnings date||05 Aug 2020|
|Forward dividend & yield||0.14 (1.63%)|
|Ex-dividend date||17 Jun 2020|
|1y target est||12.54|
(Bloomberg) -- Alarm.com Holdings Inc. plunged as much as 20%, the most intraday in almost five years, after Alphabet Inc.’s Google announced a partnership to create smart-home security products with ADT Inc.Stifel analyst Brad Reback said the pact is a “potential long-term issue” for Alarm.com, which offers interactive security and video monitoring for residential and commercial properties. In a February filing, Alarm.com said ADT represented “greater than 15% but not more than 20%” of its revenue in the three years ended 2019.“This ADT/Google partnership could become a headwind to ADT’s existing technology relationship (five-year deal) with Alarm.com that was formed in 2017,” Reback said.William Blair analyst Matthew Pfau said he doesn’t expect that the alliance will have a material impact on Alarm.com over the next year, as it’d be tough “for ADT to move its roughly 3 million subscribers on Alarm.com to another platform.” But Pfau said, at the least, the partnership could be used to put pressure on Alarm.com during contract renegotiations. As a result, Pfau downgraded his Alarm.com investment rating to market perform from outperform, also citing a lack of catalysts to lift Alarm.com’s stock.Shares of home-security company Resideo Technologies Inc. also slumped Monday, falling as much as 22% in the biggest intraday decline since March.ADT expects to offer some Google devices to its customers starting this year and to expand the integration in 2021, according to a statement. As part of the partnership, Google will invest $450 million to acquire a 6.6% stake in ADT.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Alphabet Inc.’s Google is buying a $450 million stake in home security firm ADT Inc., forming a partnership that could get the tech giant’s smart-home products in front of millions of new customers.The deal gives Google a 6.6% stake in the Boca Raton, Florida-based ADT, the largest home security company in the U.S. with about 20,000 employees and more than 6 million customers. Google’s prowess in hardware design and software will give ADT access to technology it wouldn’t be able to build on its own. ADT will begin distributing Google’s Nest home products exclusively. Shares of ADT skyrocketed as much as 100% before pulling back somewhat. They were up 57% to $14.40 at 11:17 a.m. in New York. Google shares were little changed.Distribution is key for Google because it doesn’t have a network of retail stores like Apple Inc. and doesn’t own its own marketplace like Amazon.com Inc. The three tech giants are locked in a battle for prime placement in people’s homes, designing appliances centered around their unique voice assistants. Google has many distribution deals with home builders and utility companies, but the ADT agreement is notable for its size and the fact that Google is taking an equity stake.Until now, ADT hasn’t favored one company’s products over another. This deal changes that.“The partnership with Google is us no longer pursuing a path of product agnosticism and aligning with someone we think is the best in the business,” said ADT Chief Executive Officer Jim DeVries. ADT will still integrate with Amazon’s Alexa voice assistant if customers ask for it, but in hardware categories where Google has an offering, it will be the exclusive partner, DeVries said in a phone interview.The smart home market is experiencing “explosive gains” DeVries said, and is projected to grow 20% annually. “Together the smart home and security market represents a tremendous opportunity for ADT and Google,” DeVries said on a conference call with analysts.Both companies will commit an additional $150 million, subject to the achievement of certain milestones, for marketing, product development, technology and employee training, they said. The deal would make Google ADT’s second-largest shareholder, behind Apollo Global Management Inc., the private equity firm that took over ADT in 2016 and helped organize an initial public offering. Google entered the smart-home market when it bought Nest in 2014 for $3.2 billion. The unit has become one of the largest makers of internet-connected thermostats, smoke alarms and locks. In the security space, it has about 40% of the market compared to Amazon’s 35%, according to a 2019 research report by Rakuten Intelligence.Amazon’s home security system Ring has been criticized by privacy and civil rights activists for working too closely with police, including inking deals where police forces give out Ring cameras to residents for free in exchange for being able to connect them into their own surveillance networks.DeVries said ADT doesn’t give cameras to police and doesn’t have hardware deals with law enforcement. On the monitoring side, ADT does work closely with police forces, who often respond when a security alert is triggered by an ADT alarm system.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
* Google’s award-winning Nest hardware combined with ADT’s trusted security, professional installation and monitoring service to create a fully integrated set of devices, software and services for the secure smart home * Google to invest $450 million to acquire 6.6% ownership in ADT, cementing mutual, long-term commitment to partnership * Each company to commit $150 million for co-marketing, product development, technology and employee training * Partnership will provide customers with integrated smart home technology to be offered in both DIY and professionally installed security offeringsBOCA RATON, Fla., Aug. 03, 2020 (GLOBE NEWSWIRE) -- ADT (NYSE: ADT), a leading provider of security and smart home solutions, and Google today announced they are entering into a long-term partnership to create the next generation of smart home security offerings. The partnership will combine Nest’s award-winning hardware and services, powered by Google’s machine learning technology, with ADT’s installation, service and professional monitoring network to create a more helpful smart home and integrated experience for customers across the United States.The partnership will integrate Google’s hardware and services and ADT’s DIY and professionally installed smart home security solutions to innovate the residential and small business security industry. The future ADT + Google helpful home security solution is expected to advance smart home offerings and attract new consumers seeking premium technology, end-to-end smart home service and trusted security. “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. “Google’s partnership and financial investment in ADT underscores the depth of our joint commitment to the smart home and security markets. Our entire leadership team is looking forward to continuing our work with Google as we define the future of helpful home security and build a productive long-term partnership.”“We’re excited to partner with ADT to further our mission of building helpful devices for the home,” said Rishi Chandra, GM and Vice President of Nest. “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.”Partnership VisionThe partnership pairs ADT’s more than 20,000 professionals together with Google’s suite of helpful home hardware, manufacturing technology and vertical technology stack.ADT + Google will offer customers an advanced, integrated helpful home security solution. The partnership is underpinned by a long-term commitment from both companies to making safe, secure, private and differentiated products accessible to new and existing customers.The simplified yet innovative ADT + Google security solution will sit at the center of the new, helpful home, and advances in machine learning will transform the smart home security customer experience.ADT expects to offer certain Google devices to its customers beginning this year and to expand the integration in 2021. The complete ADT + Google helpful home security solution will utilize a secure platform for a seamless experience that prioritizes privacy and interoperability for greater customer peace of mind and choice.Strategic InvestmentGoogle will make a $450 million investment in ADT in exchange for shares of a newly created Class B common stock having all of the rights and preferences of ADT's common stock except for the right to vote on the election, appointment or removal of directors. Upon the closing of Google’s equity investment in ADT, Google will own 6.6% of ADT’s outstanding aggregate common equity. Google’s equity investment, which is subject to customary closing conditions, is expected to close in the third quarter of 2020. Proceeds will be used to fuel growth and reduce leverage over time.Each company will commit an additional $150 million, subject to the achievement of certain milestones, to be used for co-marketing, product development, technology and employee training to advance the partnership. These investments are expected to accelerate ADT’s capital efficient growth and drive broader consumer awareness and deeper product innovation for both companies in the fragmented yet rapidly expanding smart home market. Conference CallADT management will discuss the partnership and other related matters during a conference call and webcast beginning at 8:30 a.m. EDT today. The conference call can be accessed as follows: * By dialing 1-877-407-3982 (domestic) or 1-201-493-6780 (international) and requesting the ADT Google Conference Call * Live webcast accessed through ADT’s website at investor.adt.comAn audio replay of the conference call will be available from approximately 11:30 a.m. ET on Aug. 3, 2020, until 11:59 p.m. ET on Aug. 17, 2020, and can be accessed by dialing 1-844-512-2921 (domestic) or 1-412-317-6671 (international), and providing the pin number 13707181 or by accessing ADT’s website at investor.adt.com.Follow the ADT + Google story at www.adt.com/google.FORWARD-LOOKING STATEMENTS ADT has made statements in this press release and other reports, filings, and other public written and verbal announcements that are forward-looking and therefore subject to risks and uncertainties. All statements, other than statements of historical fact, included in this press release are, or could be, “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and are made in reliance on the safe harbor protections provided thereunder. These forward-looking statements relate to, among other things, our recently executed long-term, strategic partnership with Google and any stated or implied outcomes with respect thereto, our future growth prospects, our success with respect to product innovation and the market acceptance thereof, the current or future market size for our products, our ability to meet the milestones we have established with respect to our strategic partnership with Google, our ability to effectively utilize any of the amounts invested in us by Google, our anticipated financial performance, management’s plans and objectives for future operations, business prospects, the outcome of regulatory proceedings, market conditions, our ability to successfully respond to the challenges posed by the COVID-19 pandemic, and other matters. Any forward-looking statement made in this press release speaks only as of the date on which it is made. ADT undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. Forward-looking statements can be identified by various words such as “expects,” “intends,” “will,” “anticipates,” “believes,” “confident,” “continue,” “propose,” “seeks,” “could,” “may,” “should,” “estimates,” “forecasts,” “might,” “goals,” “objectives,” “targets,” “planned,” “projects,” and similar expressions. These forward-looking statements are based on management’s current beliefs and assumptions and on information currently available to management. ADT cautions that these statements are subject to risks and uncertainties, many of which are outside of ADT’s control, and could cause future events or results to be materially different from those stated or implied in this press release, including among others, risk factors that are described in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings with the Securities and Exchange Commission, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained therein.About ADT ADT is a leading provider of security, automation, and smart home solutions serving consumer and business customers through more than 300 locations, 9 monitoring centers, and the largest network of security professionals in the United States. The company offers many ways to help protect customers by delivering lifestyle-driven solutions via professionally installed, do-it-yourself, mobile, and digital-based offerings for residential, small business, and larger commercial customers. For more information, please visit www.adt.com or follow on Twitter, LinkedIn, Facebook, and Instagram.Contacts: ADT Media Paul Wiseman firstname.lastname@example.orgADT Investor Relations Derek Fiebig email@example.com