Home and business security company ADT has closed a $1.2bn equity investment from State Farm Insurance, a US-based group of mutual insurance companies.
The investment results in State Farm owning approximately 15% of ADT, according to a report from SDM.
In addition to the equity investment, State Farm committed up to $300m to fund product and technology innovation, customer growth and marketing activities in connection with the partnership.
State Farm has funded the first $100m and the two companies will collaborate to approve initiatives utilising the funds.
As part of the equity investment, State Farm obtained a seat on ADT’s Board of Directors. State Farm has designated Paul Smith, executive vice president and chief operating officer, as its representative. Smith has joined the ADT Board of Directors as a Class II director with a term expiring at the 2025 annual meeting.
Google is also increasing an existing relationship with ADT and is putting in an additional $150m for connected home investments. Google parent Alphabet owns the Nest smart home brand of thermostats and other connected products. Google bought a 6% stake in ADT in 2020.
Jim DeVries, ADT president and CEO, said, “We’re excited to begin innovative work with State Farm to develop new technology, products, and services that create safer, smarter and more protected homes while improving the overall customer experience for millions of homeowners.
“Our partnership with State Farm perfectly illustrates ADT’s mission and long-term strategy, shared during our Investor Day in March, to deliver safe, smart and sustainable solutions through innovative offerings, unrivalled safety and premium experiences.”
Liberty Mutual Insurance has recently acquired Malaysian insurer AmGeneral Insurance Berhad (AmGeneral).
AmGeneral was previously 51%-owned by AmBank and 49%-owned by Insurance Australia Group. Liberty Insurance Berhad has acquired 100% of the shares of AmGeneral, and AmBank continues to hold a 30% interest in the business through the consideration shares they received as part of the deal.
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