ADT CEO Jim Devries cut a deal with Insurance provider State Farm this month, which will see a $1.2 billion investment from the company into connected homes. As part of the deal, State Farm will receive a 15% stake in ADT, and COO Paul Smith will be put onto the board of directors.

Devries noted the deal will help ADT reach a raft of new customers with its security products and services.

In an interview, Devries noted the two companies complemented each other, saying, “Traditionally, insurance has been about restoration. And by partnering with State Farm and putting our products together, we will be able to shift purely from restorative insurance to more of a predict and prevent model. So we think it’s great for customers and great for both companies.”

This is the second deal Devries has struck for ADT, the first being a $450 million investment from Google in September of 2020. That deal resulted in a line of connected Nest devices which have just begun to be introduced for sale.

Following the deal with State Farm, Google will hold a 6% stake in the company.

Devries explained, “For Google, it’s principally about hardware distribution and increasing the number of subscribers that they have for their Nest video analytics product.”

Devries’ efforts have already begun to bear fruit for ADT, as second quarter sales rose 23% and adjusted operating profits were up 55% year over year, as the company’s subscriber base grew and existing customers remained with the platform, even in the face of rising inflation and economic uncertainty.

ADT share prices rose 7% year over year, even as the S&P 500 dropped 9%, as investors began to see the company turn around.

Devries noted, “It’s a complex story. And it has taken a while to unfold. We think that this State Farm opportunity will serve as a significant catalyst for us, not only for improved subscriber acquisition efficiency, but from a retention and growth perspective. So we’ll keep keep telling the story. We’ve always been a show me stock.”