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.

IPVM Image

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 **** *****-***:

IPVM Image

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

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

IPVM Image

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

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

IPVM Image

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

IPVM Image

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

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

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

Comments (11)

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

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

Agree: 1
Disagree
Informative: 3
Unhelpful
Funny

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

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

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

Agree
Disagree
Informative
Unhelpful
Funny

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

Agree
Disagree
Informative
Unhelpful
Funny

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

Agree
Disagree
Informative
Unhelpful
Funny: 1

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

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

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

Agree
Disagree
Informative
Unhelpful
Funny

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

Agree
Disagree
Informative
Unhelpful
Funny

**.

Agree
Disagree
Informative: 1
Unhelpful
Funny

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

Agree
Disagree
Informative
Unhelpful
Funny

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

IPVM Image

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

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

Agree
Disagree
Informative
Unhelpful
Funny

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

Agree
Disagree
Informative
Unhelpful
Funny

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

Agree
Disagree
Informative
Unhelpful
Funny
Login to read this IPVM report.
Why do I need to log in?
IPVM conducts reporting, tutorials and software funded by subscriber's payments enabling us to offer the most independent, accurate and in-depth information.
Loading Related Reports