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ADT stock soars 65% after $450 million investment from Google

MIAMI, FL - FEBRUARY 16: An ADT home security alarm sign is seen in front of a home on February 16, 2016 in Miami, Florida. It was announced today that home security firm ADT was purchased by private equity firm Apollo Global Management for $6.9 billion. (Photo by Joe Raedle/Getty Images)

(CNN) — 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.