Shares of ADT Inc. climbed 15.7% in premarket trading Tuesday after the home-security company confirmed that it has secured about $1.65 billion in new investments from insurer State Farm and Alphabet Inc.'s Google to boost product innovation, marketing and customers. The Wall Street Journal had earlier reported about the new investments by State Farm and Google. The investments include $1.2 billion by State Farm to buy about a 15% stake in ADT. And State Farm will commit up to $300 million to fund product innovation, customer growth and marketing. Separately, Google has agreed to commit an additional $150 million, subject to the achievement of certain milestones, to advance opportunities created by product innovation, which would raise Google's total commitment to $300 million. "ADTs partnership with State Farm creates the capability to drive innovation in homeowners insurance on a broad scale. By delivering a truly connected home, together we can improve the customer experience and provide more peace of mind," said ADT Chief Executive Jim DeVries. "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." ADT's stock has lost 5.3% over the past three months through Friday while the S&P 500 has declined 4.8%.
(END) Dow Jones Newswires
September 06, 2022 08:45 ET (12:45 GMT)
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