Google LLC is investing $450 million into security company ADT Inc. in return for a 6.6% stake and a deal to drive sales of its Nest devices.

ADT is one of the world’s oldest security companies, established in 1874, and is best known today for its electronic security, fire protection and other alarm monitoring services. The company operates in over 35 countries and services about 80% of U.S. retailers, giving Google a solid base from which to promote Nest products.

The strategic partnership, announced today, is described as allowing both companies to “create the next generation of the helpful home — based on new security solutions that will better protect and connect people to their homes and families.”

“Google will combine its Nest devices, services and technology with ADT’s leadership position providing security solutions for millions of homes and small businesses in the U.S.,” Rishi Chandra, Google vice president and general manager of Nest, said in a blog post. “The partnership pairs more than 20,000 ADT professionals together with Nest’s portfolio of helpful home devices. The company’s network of thousands of professional technicians will be able to sell and install devices like Nest Cameras and Nest Hub Max, all powered by Google Assistant.”

Google acquired Nest in 2014 for $3.2 billion, but Nest later became a separate business unit to Google when Alphabet Inc. was established in 2015 as the umbrella company for the various parts of Google. The relationship between Google and Nest was problematic, with each company doing its own thing and not helped by dysfunctional management under former Next Chief Executive Officer Tony Fadell. He left the company in June 2016 and Nest returned to direct Google ownership and oversight in February 2018.

The reunited Google and Nest has debuted various products such as the Nest Hub Max in May 2019, but its products — which include smart speakers, smart displays, streaming devices, thermostats, smoke detectors, routers and security systems — still play second fiddle to Google’s far better-known products.

The deal with ADT is a positive step forward for Nest in that it may result in potentially more customers as well as more consumer awareness.

“Over time, Nest’s devices, powered by Google’s machine learning capabilities, will enhance ADT’s security monitoring and become the cornerstone of ADT’s smart home offering,” Chandra added.

Photo: Raysonho/Wikimedia Commons