Shares of home security business ADT rose sharply on Monday after the company announced a $450 million investment from Google.
ADT stock rallied some 65% after the opening bell in New York, after jumping in premarket trading. Google shares had inched higher in premarket but were modestly lower after regular trading began.
Google’s investment bought a 6.6% stake in ADT to kick off a long-term partnership. The two companies plan to create smart home software and services using Google’s Nest hardware and ADT’s security expertise.
Both companies have also committed $150 million in the partnership to cover marketing, product development, technology and employee training.
ADT plans to begin offering Google devices to its customers starting this year.
Google will receive newly created Class B shares that come with no votes in company elections, appointments, or removal of directors.