BLOOMINGTON, Ill., Sept. 6, 2022 /PRNewswire/ -- Today, State Farm announced a $1.2 billion equity investment in ADT Inc. resulting in State Farm owning approximately 15% of ADT after the equity investment and related transactions close. This partnership launches State Farm into a new category, allowing the company to reimagine the homeownership experience and innovate new ways to apply Smart Home technology to home insurance, with customer benefits that may include lowered costs, reduced claims, and smart home security devices that help to proactively mitigate loss caused by water, fire, or intrusion.
"As the industry leader, we've always recognized our responsibility to go beyond insurance and find ways to build stronger and safer communities for our customers and the neighborhoods we serve," said Paul Smith, Chief Operating Officer at State Farm. "This partnership with ADT gives State Farm the opportunity to provide Smart Home technology that takes us from our 'repair and replace' model to a 'predict and prevent' mindset. These innovations will help us take the next step into the future of home insurance and add more value for our customers."
As part of this new partnership, and by building upon ADT's existing relationship with Google, the companies will combine next-generation security, innovative smart home technology and reimagined risk-mitigation capabilities to monitor, detect, help prevent and optimize against homeownership risks.
With 13.7 million homeowners policies in force, State Farm will invest up to $300 million in an opportunity fund to support product innovation, technology and marketing that will differentiate and improve the customer experience for homeowners.
The companies will embark in the product innovation, technology development and marketing process together under the fund investment.
Morgan Stanley & Co. LLC was the financial advisor to State Farm, and Sidley Austin LLP acted as legal advisor. Citi and Evercore were the financial advisors to ADT, and Cravath, Swaine & Moore LLP acted as legal advisor.
About State Farm®:
For 100 years, the mission of State Farm has and continues to be to help people manage the risks of everyday life, recover from the unexpected, and realize their dreams. State Farm and its affiliates are the largest providers of auto and home insurance in the United States. Its 19,400 agents and nearly 55,000 employees serve over 87 million policies and accounts – which includes auto, fire, life, health, commercial policies and financial services accounts. Commercial auto insurance, along with coverage for renters, business owners, boats and motorcycles, is available. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No. 42 on the 2022 Fortune 500 list of largest companies. For more information, please visit http://www.statefarm.com.
About ADT Inc.:
ADT provides safe, smart and sustainable solutions for people, homes and businesses. Through innovative products, partnerships and the largest network of smart home, security and rooftop solar professionals in the United States, we empower people to protect and connect what matters most. For more information, visit www.adt.com.
SOURCE State Farm