ADT gets another blue-chip investor

Article Excerpt

We think ADT has a bright future—as do its big investors Google and State Farm. Google owns a 6% stake in ADT. That’s after the tech giant’s 2020 investment of $450 million in the company. ADT now offers its customers certain Google products including Internet-connected thermostats, smoke alarms and locks. Meantime, State Farm is also partnering with ADT. ADT INC., $8.05, is a buy. The company (New York symbol ADT; TSINetwork Rating: Extra Risk) (adt.com; Shares o/s: 857.0 million; Market cap: $7.3 billion; Yield 1.7%) reports that State Farm will invest $1.2 billion in ADT and own 15% of its shares. Privately held State Farm is the largest insurer of homes in the U.S., with 13.7 million homeowners’ policies. In addition to buying ADT shares, State Farm will invest up to $300 million into ADT’s opportunity fund to support product innovation, technology and marketing as it seeks to differentiate and improve the customer experience for homeowners. Meanwhile, Google will commit a further $150 million to…