ADT Acquires AI-Powered Sensing Firm Origin AI
Home security firm ADT has acquired Origin AI, a company specializing in advanced presence-sensing technology. The deal signals a strategic push by ADT to integrate AI that can distinguish between human and non-human activity to improve accuracy and reduce false alarms in smart home security systems.
- The all-cash transaction is valued at $170 million. Concurrently, ADT and Origin AI secured a five-year commercial agreement with European security firm Verisure, a prior investor in Origin, valued at a minimum of $30 million for continued licensing of the technology. - Prior to the acquisition, Maryland-based Origin AI had raised nearly $50 million in venture capital. Its Series B extension round in December 2023 was led by Verisure, with follow-on participation from investors including Verizon Ventures. - The acquisition provides ADT with a significant intellectual property portfolio of more than 200 global patents related to its WiFi-sensing technology. - Origin AI’s technology is designed to reduce costly false alarms by using AI to analyze disruptions in WiFi signals for presence detection, rather than relying solely on traditional motion sensors or cameras. - This deal is part of ADT's broader strategy to expand beyond traditional security services into integrated smart home platforms, complementing its ADT+ system which already integrates Google Nest devices. - New products incorporating the Origin AI technology are not expected to be commercialized until 2027, indicating a longer-term revenue synergy timeline for the acquisition. - From a valuation perspective, the broader Internet of Things (IoT) sector saw median enterprise value-to-revenue multiples of approximately 3.4x in late 2023. M&A in the smart home space is increasingly focused on acquiring assets that offer recurring revenue models and strong ecosystem integration potential.
