Google's Nest Labs acquires Dropcam for $555M
Smart-device maker buys home monitoring security startup in deal independent from Google to expand its brand into home security and video monitoring.
CNETHome automation company Nest Labs will acquire the video-monitoring startup Dropcam, which makes Web-connected home security cameras, in a deal worth $555 million in cash. The deal, signed Friday, has yet to close.
Nest will fold the company into its existing line of smart home products, which currently includes the Nest Protect smoke detector and Nest Learning Thermostat. Dropcam's products will now be under Nest's privacy policy.
Despite that assurance, the deal is likely to prompt privacy concerns considering Google bought Nest in January for $3.2 billion. The deal, however, was sealed solely by Nest, the company said, and will be used to expand the Nest brand into home security and video monitoring.
The news was first reported Friday by The Wall Street Journal, as well as Recode.
Nest, founded in 2010, is the brain child of former Apple exec Tony Faddell -- who headed up the company's iPod division -- and Apple colleague Matt Rogers. Dropcam, which has thus far raised $47.8 million in venture capital funding, was founded in 2009 by Greg Duffy and Aamir Virani, who spun the company out of camera software development the two engineers performed for Swedish technology company AXIS.
'The teams are very well-aligned and we love the product,' Matt Rogers, Nest co-founder and vice president of engineering, told Recode. 'We both think about the entire user experience from the unboxing on. We both care deeply about helping people stay connected with their homes when they're not there.'
This story is developing...
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