Google’s Nest Labs to buy Security Camera Startup Dropcam

Google’s Nest Labs to buy Security Camera Startup Dropcam

Google’s Nest Labs announced that the company will acquire security camera and home monitoring startup Dropcam for $555 million. Nest Labs sells digital thermostats and smoke alarms. The company will improve its product offering in home automation and security with acquisition of Dropcam. The details of the deal have not been announced yet but media reports expect major part of the money to be paid in cash.

Dropcam offers home Wi-Fi enabled security camera setup which can be checked on smartphone and other devices using internet. Dropcam will move its headquarters from San Francisco to Palo Alto. Dropcam was founded in 2009 by Greg Duffy and Aamir Virani. The company was valued at $50 million in 2012. Menlo Ventures and Accel Partners have invested in Dropcam as early stage investors.

Matt Rogers, co-founder of Nest, said, “We care very deeply about helping people stay connected to their home, especially when they’re not in their home.” Nest gathers information on consumer habits and usage of connected devices. The company added that it will not share the consumer data with Google. Google recently indicated that in near future, the connected devices could act as advertising platform for the company.

Dropcam offers security cameras for $149 and $1999 depending on the quality of video. The company also offers archival service for video footage on secure servers with packages starting at $10 per month. The home security market is worth $15 billion in the United States.

Google had acquired Nest Labs for $3.2 billion earlier this year. The major technology and electronics companies including Google, Apple and Samsung are planning to improve their product offerings in home automation sector. Apple also announced its home automation software at WWDC 2014.

With acquisition of Dropcam, Google’s Nest Labs will have more access to consumers in home automation and security market. Earlier this month, Google also announced acquisition of Skybox Imaging Inc.

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