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Apollo's ADT Soars on Google Stake as Rival Plummets

Published 08/03/2020, 11:04 AM
© Reuters.
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By Christiana Sciaudone

Investing.com --  ADT soared 67% on Monday after Google (NASDAQ:GOOGL) said it is buying a 6.6% stake in the security firm for $450 million. 

Shares are trading at an all-time high. But ADT rival Alarm (NASDAQ:ALRM).com fell 18% on the news.

The partnership will combine Google’s Nest with ADT’s installation, service, and monitoring network. 

ADT is backed by controlling private-equity firm Apollo Global. ADT went public in 2018 at $14 a share. Shares have three buy ratings, three holds and no sells, according to analysts tracked by Investing.com. Earnings are due to be announced on Wednesday.

Each company will commit an additional $150 million for marketing, product development, technology, and employee training.

 

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