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ADT draws more than $1.5B of new investments from State Farm, Google
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ADT Inc. has secured investments totaling $1.5 billion from State Farm and a partnership aimed at expanding the security company’s customer base and improving risk-mitigation for insured homeowners, the companies said.
Under the deal, which was reported earlier by The Wall Street Journal, State Farm will spend $1.2 billion to buy 133.3 million ADT shares, or about 15% of the company. That represents a share price of $9, above ADT’s Friday close of $7.21.
The closely held Bloomington, Ill., insurer will also invest up to $300 million in ADT to fund product and technology innovation, marketing and customer acquisition and will get a seat on ADT’s board.