UPDATE: ADT shares soar 52% before market launch following company news with Google to create smart home security product

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Shares of residential and commercial security provider ADT Inc. ADT,
-0,46%
jumped 52% in pre-market trading on Monday, after the company announced a new venture with Alphabet Inc.’s GOOGL,
-3,27%
GOOG,
-3,16%
Google to create the next generation of smart home security offerings. The partnership will leverage Google’s Nest hardware and services, which will be combined with ADT’s installation, service and professional monitoring network. Google will invest $ 450 million to acquire a 6.6% stake in ADT’s newly created Class B common stock, in a deal expected to close in the third quarter. The two companies are committing $ 150 million for co-marketing, product development, technology and employee training. ADT has more than 20,000 people who will work with Google’s home hardware suite, manufacturing technology and vertical technology stack, the companies said in a joint statement. ADT plans to start offering Google devices this year and expand integration in 2021. A conference call to discuss the partnership will take place at 8:30 am ET. ADT shares gained 8.6% of the year to Friday, while the S&P 500 SPX,
+ 0,76%
gained 1.3%.

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