State Farm Invests $1.2 Billion, Acquires 15% of ADT

By John Honovich, Published Sep 06, 2022, 12:41pm EDT (Info+)

Mega-insurance company State Farm is taking ownership of a significant portion of mega-security provider ADT.

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Likewise, 2 years ago Google invested in ADT (a 6.6% stake) and ADT says Google is committing more funding to ADT. However, ADT's stock is still down 33% since when it went public again in 2018.

This builds on the trend of home security companies expanding into insurance, e.g. see Vivint 'Smart' Home Insurance Examined.

In this note, we examine this newest investment and the potential for ADT rebounding with Google and State Farm.

ADT ********

*** * *** ***** ** **** deal:

State **** **********

***** **** ** **** *****, **** $82+ ********* **** *******, **** **** *** **** ** ADT. ********, ***** **** *** **+ million *********, **** **** **** *** that ** ***'* (*.* *******).

Integrating *** *** ***** ****

*** **** ** *********** ***'* ********** with ***** ****'* ******** ** ****** risks/losses *** ***** **** *********, **** ADT ********** ** ** *:

*** ********** ******** **** ** ******* substantial ******** ***** **** ***** **** technology ** ****** *** ******** ****** related ** *****, ****, ********* *** other ************* ******* *****

*** ******** **** ***** ******** ** how *** *** ****** ****** *** fire *** ***** ****** ** **** as **** *****-***:

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Expand *** ***** **** ***** **** *********

********, ***'* **** **** ********** *** State **** *** **** ****** ***'* sales ** ***** **** *********:

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Slow ******** ****** ********

*******, *** ****** ** ***** ******** to ** ***** ****** **** *** next *** ***** **** *** ******* only ********** ~*.*% **** ****** ** CSB (******** *** ***** ********) *********:

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***** ***** **** ** ****** $* per ***** (* ~**% ******* **** the ***** ***** ***** ** **** deal ** $*.**), *** ***** ***** is ** ~$*, ** ** ***** trading ** * ***** ******** *** to *** ***** ***** **** ** paying, ** *** ******* ***** *****:

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Outlook **** *******

**** ***** **** ** ****** **** a *********** ****** ** *** ***** (at * ****** *******) ** * good **** *** ***, ********** ******** to ***** **** ********** **** *** entrants (**** ** **********) ***** ******* incumbents **** ***. *** ******* ** Google *** *** *** ***** ****** that *******.

*******, *** *******'* ***** *********** ***** price *** ****** ****** ************, **** with *** ******* ** ***** *** giant ********* **** *********, ***** **** industry *** ********* ****** *** ****** much ****** *** ** ***.

Comments (11)

John Honovich

IPVM | 09/07/22 12:07am

*** ****** ******* ************ ***** **** ****. ** **** was **** * ***** ****, (*) the ***** ***** ***** ** ** far ****** **** **** ***** **** paid *** (*) *** ***** ** setting **** ****** ************ *** ******.

* ***** **** ** * **** deal *** *** *** ******** *** faced * *** ** ******** **** but **** **** ** **** ****** to **** ****** / ******** **** DIY **** ** * "**********" ** SIW *********.

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Undisclosed #2

In reply to John Honovich | 09/21/22 06:16pm

***** *** ******* ********** ********** ****** a **** ******* ** *** **** for **** *****, *** "**********" *** referring ** *** ***** ****/********* ******** side ** *** ****, ** *** ADT ******** **** **** **** ** provided ******** ** ** **** ****** their ********* ** ****** * ******* smart **** ********* ********, ***** ***** be *** ***** ** *** **** - ****** ** *** **** **** about ************* *** ****** ******** ****** these ***** **** *** ******** ******** that **** ****** ********** ********.

*** ******* **** ********** **** ***** major ********* ******** **** ** ********* in **** ** *** ******* **** (ie ****** * ***** ** *********** security *********), ** **** **** *** create *********** ********* ** ***** ****'*.

* ***** *** **** ***** ****'* valuation ***** ** *** *** ********** affected **. ***'* - *** ** course, ***** **** ** * ******* company ** ***** ** ** ********* stick. *** *** ******** **** ** coming ******* **** *** ****.

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John Honovich

IPVM | In reply to Undisclosed #2 | 09/21/22 06:20pm

**** ** **'* ** ******** *** revolutionary ** *** ******** *** *****'* ADT **** ** **** *** * lot ** *****? **** ***** ******** ADT's ***** ***** *****?

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Undisclosed #2

In reply to John Honovich | 09/21/22 06:22pm

***** **** **** **** **** * billion ***** *** **. ***** **** a *** ** ***** :)

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John Honovich

IPVM | In reply to Undisclosed #2 | 09/22/22 10:02pm

** *********** * ******* *******, ***** **** would *** **** ******** **** / access, ***. *** *** ***** ********* that ******* ** ******* (**** ****, etc.).

*******, ***** **** ******** ******** *****, stock ** *** ******* *** *********** cash ****.

**** *****, ***** **** ****** **** ADT *****, ***** **** *** **** ADT ***** ********, ***** *** ****, maybe *** ****.

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Undisclosed #1

09/07/22 04:07am

**** ***** **** *** **** *** doesn't ******** *** ********* ** ******* of **** *** ******?

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Avatar

Ross Vander Klok

IPVMU Certified | In reply to Undisclosed #1 | 09/07/22 02:36pm

**.

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Lee Jones

Support Services Group
09/07/22 03:36pm

*** ***** **** *** ********* **** something? *** ****** ******* ***** *** absolute **** *** ***** ******** ****-********, by *******/****** ******, ** ******* ***** losses ** ******** *****. ********** ******* like ***, ******, ***** ********, ***********, have **** *********** **** **** **/*** Enforcement (*** ** ******* ** **% false ******) ****** **** *** ********* witnessed *** *******. **** *** *** monitoring ******** ********, ***-**, ********* ******** by ***** ************, ******** ******** ** deterrent ***** ********* **** ********* ********. Majority ** *** ******** *** ********* are ******** ********** ******** “********” ***** systems ** **, **** **** ** no **** ********.

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John Honovich

IPVM | 09/20/22 05:20pm

* ***** *****, ******* ***** **** paying $* *** *****, *** ** still ******* ** ***** ** $*:

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******, ***** *** ******* **** (*** 2nd) *****, *** ***** *** ******** slightly **** *** **** * *****.

*** * ************ ******* **** ***** State ****'* ********* *********** ** ***.

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Lee Jones

Support Services Group
In reply to John Honovich | 09/20/22 06:30pm

**** ** ** ******* *** ** still ***** **********. ****** **** ** the ********** *** ****** **** *** EPS/Earnings *** *****. *** *** ***** are ** *** ****** ** *** overdue "*********" ** ***** ***-****-*** ******** models. ******, ***** ****, *** ******, can ******* ***** ******** ** ******* on *** ***** ****** ** ***.

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Lee Jones

Support Services Group
09/24/22 06:30pm

**** ** ***********. **** ** ****. We ******* **** ** **** ******** and ******** ** ****** **** ******… the ****** *** *** ********/ ***** (overlooking ****** ***** ****** **********). ****** to *** *** ********, ******, *** year *** ******** *****. ***** ***** is ********, ** *** *+ ******* existing *** ****** ********* ********* ****** customers **** ************ **** ******** ***/********* ******* *******. ***** *********, *** ******* *********, could ******* *** ***** *** ******** models. ***** *** ********* *** ******** of *** *****, **** *** **** downgraded ** **** ***/****** ****** ** be “********” ****** **** *** ** no ******** *** **** ********. ********** due ** *** **** **% ***** alarms, *** ***/*********** ****** ********, ***** consumes ** **** ** **% ** police *******, *** *** ** ********. Most ********* ********* ***** ********* **** response, *** *** ******* **…... = attrition *** *********.

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