Google Inc (GOOG): Nest acquires Dropcam for $555 million
Nest, the smart home appliances company that was acquired by Google Inc (NASDAQ:GOOG), has acquired home-monitoring service for $555 million. It was a cash deal that was announced on Friday. The acquisition will help integrate Nest further into homes.
Nest is known for its flagship product called the Nest Thermostat. The Nest Thermostat learns your daily habits and can adjust the temperature based on your schedule.
Dropcam creates home monitoring cameras that sell for $149-$199 and it has an optional cloud recording service that costs $99 per year. The service can store up to a week or a month of video. It allows users to receive activity notifications on smartphones. Around 39% of Dropcam’s users opt into the cloud recording service.
By Rebecca Hiscott on June 22, 2014 Email
Nest, which was acquired by Google to the tune of $3.2 billion, recently made a power purchase of its own. The purveyor of smart home appliances bought home-monitoring service Dropcam for $555 million, in a cash deal announced Friday afternoon.
The move appears to be part of a push to integrate Nest further into the home. The company’s flagship product is the connected Nest Thermostat, which learns your daily habits and adjusts your home’s temperature based on your schedule.
Dropcam produces home monitoring cameras that sell for $149 and $199 apiece and offers an optional cloud recording service that costs $99 a year. The service, which can store up to a week or a month of video, also allows users to receive activity notifications on their smartphones.
“Eventually, the plan is for us to work together to reinvent products that will shape the future of the conscious home and bring our shared vision to more and more people around the world,” said Nest founder Matt Rogers in a blog post.
Nest’s press release said that the cash deal was subject to adjustments. The deal took place independently of Google, according to Re/Code.
Dropcam is building new surveillance hardware that can track when doors open and close. Nest has a single motion detector, which can only track users’ movements when they pass in front of the thermostat or use Nest’s smartphone app to register their location.
Dropcam recently announced a service called Tabs, which is a Bluetooth-based sensor that can be used to monitor places the regular Dropcam lens can’t see.
Founded in 2009, Dropcam CEO and co-founder Greg Duffy was looking for ways to figure out who was letting their dog leave piles on his lawn. Prior to the acquisition, Dropcam raised $47.8 million in funding, including a $30 million Series C funding round.