Google has bought home-monitoring camera start-up Dropcam for a reported $555m, as the firm looks to expand its recently acquired Nest smart home technology.
Google’s Nest and Dropcam confirmed the acquisition in separate blog posts on Friday, but did not specify the price tag, but technology blog re/code put the figure at $555m citing unnamed sources Google declined to comment.
Dropcam makes connected home security video cameras, with two-way audio functions, remote monitoring, and cloud-based subscription video recording and storage capabilities.
The startup has raised almost $50 million in its five-year history, and its camera hardware is a popular seller at Amazon, the Apple Store and more.
The purchase will tie-in with Google’s Nest division, which currently features smartphone controlled thermostats and smoke detectors.
The deal will see Dropcam adopt Nest’s privacy policy after the acquisition, the latter company said in its blog post. That means data will not be shared with any other firm, including Google, without a user’s permission.
In blog post explaining the acquisition, Mr. Rogers wrote,“Eventually, the plan is for us to work together to reinvent products that will help shape the future of the conscious home and bring our shared vision to more and more people around the world.”
“For now though,” he added, “not much will change. Dropcam products will still be sold online and in stores. And Dropcam customers will still continue to use their Dropcam accounts.”
The deal is another sign of the industry optimism that the emerging market for Internet-connected smart devices in the home is poised for rapid growth. The most striking sign of such enthusiasm is Nest itself, which Google bought this year for $3.2 billion.
The deal was touted as a foray into the fast-growing “smart” home automation market, at a time consumer appliances and Internet services are merging. But it also raised concerns about the privacy implications for Google, which already collects rafts of data about users’ online habits.
Rival Apple recently revealed its own smart home software platform that lets lighting controllers, security systems and other hardware be controlled by iPhones.
Dropcam’s backers include Kleiner Perkins Caufield & Byers, Accel Partners and Menlo Ventures.
Watch this promo video explaining how Dropcam works below:
Read the Dropcam blog annoucnement here
Read the Nest blog announcement here