Smart Home trends and analysis - Aug 2022
ADT receives important investment boost from State Farm and Google State Farm has announced it will invest a total of $1.5bn in ADT in a move designed to increase cross-selling opportunities between both companies. As a result of this deal, the insurer will own approximately 15% of the security provider. State Farm has also committed to supporting the development of ADT’s product and marketing strategy as well as the creation of a new integrated smart home offering that will combine ADT’s security portfolio with other important smart home solutions such as smoke and leak detectors designed to improve risk mitigation.
Meanwhile, Google has also decided to expand its existing partnership with ADT and commit an additional $150m to support several sales and marketing initiatives such as product development and employee training. In 2020, Google made a strategic move in the residential security market with the acquisition of a 6% stake in ADT via a $450m equity investment.
Omdia believes this new capital inflow from State Farm and Google will significantly boost ADT’s growth potential in the smart home industry, enabling the company to expand beyond smart security as its primary use case while adding greater value to its commercial proposition. Moreover, the renewed partnerships will allow the three companies to develop new business synergies, strengthen their respective brands, and gain access to a larger customer base, which will therefore promote more substantial cross-selling opportunities.
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