June 23, 2014
Google-owned Smart thermostat and smoke alarm maker Nest Labs is shelling out $555 million to acquire video monitoring company Dropcam in a bid to further its footprint into the home.
The purchase will broaden Nest’s scope into the home surveillance arena.
“Dropcam lets you check in on your home, no matter where you are in the world. But that’s not the only reason we’re excited about adding them to the Nest family. Our companies actually have a lot in common,” Rogers said in a blog post.
“Dropcam built their company from the ground up with the goal of helping people stay connected to the things they care about. In a matter of a few short years, their team has managed to create products that change how people interact with their homes. So naturally, we couldn’t help but feel our companies would be a good match.”
Dropcam co-founder Greg Duffy agreed, saying the companies are “kindred spirits.”
“Both were born out of frustration with outdated, complicated products that do the opposite of making life better,” he said in separate post. “After numerous conversations with Nest Founders Tony and Matt, it was clear that we shared a similar vision. Nest cares as much about customers, privacy and product experiences as we do. Our products and technologies are a natural fit and by joining up with Nest we can fully realize our vision.”
Not much will change initially. Dropcam products will continue to be sold both in stores and online and Dropcam customers can continue to use their accounts.
Nest’s paid-for business will be applied to Dropcam as well, which means ads will not be a factor, Rogers said, adding that the customers will always come first.
“We’re sure this is going to be the start of something great for Nest, Dropcam, and most importantly you — our customers,” he said.
Nest was purchased by Google back in February for $3.2 billion.
The Silicon Valley company, co-founded by former Apple employee Tony Fadell, focuses on reinventing unloved but important devices in the home.
Since Nest launched in 2011, its learning thermostat has been a constant best seller.
Jennifer Cowan is the Managing Editor for SiteProNews.