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Google invests in ADT and integrates its Nest devices into smart home businesses

Google has invested $ 450 million for a 6.6 percent stake in security company ADT, the companies announced today. With the deal expected to close in the third quarter of this year, ADT engineers will be selling and installing Google’s Nest smart home devices, such as cameras and smart displays, this year. Residential and small businesses would be the two target markets.

But eventually Google says his Nest devices are becoming the “cornerstone” of ADT’s smart home offering. The search giant says its technology means fewer false alarms, better event detection, and more helpful notifications for ADT customers. Google says ADT customers will also get access to Nest Aware, the subscription service that offers intelligent notifications and 30 days of event history recording.

Google has been offering smart home security products under the Nest brand for a number of years. In 2017, it announced the $ 499 Nest Secure, a modular system with a central hub device and sensors to detect when doors or windows open. (The price would drop to $ 399 less than a year later.) By investing in ADT, one of the largest security companies in the US, Google is gaining a larger presence in the smart home security market. ADT says it has more than 6 million customers in the US. which could be introduced on Google devices soon.

ADT has been involved in the smart home security market for years. In 2017, it partnered with Samsung to offer a SmartThings-powered home security system, and earlier this year launched a series of security cameras under the Blue by ADT brand. When asked about the existing smart home setup, an ADT spokesperson said the company plans to continue to sell its Blue by ADT devices as a standalone system and continue to provide the same 24/7 professional monitoring. “We will continue to repeat on our existing platforms when it comes to interoperability with Google devices,” said the spokesperson.

Google currently sells a wide range of smart home technology under the Nest brand, including video doorbells, smart displays, smoke detectors, security cameras and thermostats.

Update August 3, 9:03 AM ET: Updated with ADT’s confirmation that it will continue to sell its existing smart home products.