Google invests $450 million for stake in home security firm ADT

Alphabet Inc.’s Google has agreed to pay $450 million for a stake in security firm ADT Inc. as part of a partnership to create smart-home security products.

Google will get a 6.6% stake in newly created Class-B shares of the Boca Raton, Florida-based firm, and ADT will integrate Google’s hardware and services into its products, the companies said in a statement on Monday. ADT shares jumped 49% in pre-market trading after closing at $8.61 in New York on Friday.

Both companies will commit an additional $150 million, subject to the achievement of certain milestones, for marketing, product development, technology and employee training, they said.