Shares of ADT (NYSE: ADT) leaped 16% on Tuesday after the home security solutions provider partnered with State Farm and deepened its relationship with Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google.
ADT and State Farm want to reduce the risks of homeownership. To do so, State Farm will provide up to $300 million in funding to accelerate the development of ADT's advanced security and smart-home technologies. The insurance titan will also invest an additional $1.2 billion for a roughly 15% equity stake in ADT and a seat on the company's board of directors.
"ADT's partnership with State Farm creates the capability to drive innovation in homeowners insurance on a broad scale," ADT CEO Jim DeVries said in a press release. "By delivering a truly connected home, together we can improve the customer experience and provide more peace of mind."
Source Fool.com