£65m partnership set to deliver IoT to millions.
The new venture will also provide the means to distribute services to several million homes worldwide.
Mary Turner, CEO of AlertMe, said: "AlertMe has been the pioneer in establishing and growing the Internet of Things commercially in the UK and USA.
"We have created a market-leading Internet of Things platform and a highly experienced team of technologists and operational capability, which together have given us proven ability to serve mass market customers.
"We are excited to move forward with British Gas, with an opportunity to roll out service for tens of millions of homes, and to realise our ambition for further global distribution."
AlertMe’s consumer base includes 200,000 homes, as well as half a million homes benefiting from personalised energy data services.
The company was founded in 2006 and deals with tens of billions of IoT data points, with one billion smart meter readings made every month.
Nina Bhatia, Commercial Director for British Gas, said: "We are very excited at the potential we’ve now got through technology, to help people manage their homes and lives more easily.
"With access to new technology and skills we’re strengthening our capability at British Gas to develop a family of products that will put people in control of their homes in a way that’s simply never been possible before."