Nest buys Dropcam for $555 million in cash.
Nest Labs has acquired Dropcam for $555 million, reports the Wall Street Journal. The deal was also confirmed by Nest and Dropcam today. Google-owned Nest says that the huge decision to acquire Dropcam wasn't a difficult one to make.
"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," Nest said.
Dropcam co-founder Greg Duffy calls the deal a "natural fit."
"Nest and Dropcam are kindred spirits. Both were born out of frustration with outdated, complicated products that do the opposite of making life better. After numerous conversations with Nest Founders Tony and Matt, it was clear that we shared a similar vision,' writes Duffy.
The deal was signed earlier today and will be subjected to regulatory approval.
Dropcam makes Internet-connected home-monitoring cameras. But the company isn't just into hardware.
Prior to building its own webcams, co-founders Greg Duffy and Aamir Viran developed a cloud-based database for storing videos. Tired of using third-party cameras, and with an initial funding from Mitch Kapor, Greg and Aamir launched Dropcam in 2009.
Dropcam now offers a cloud storage service called "Cloud Recording," which stores unlimited video footages. It costs $9.95 a month or $99 a year. Dropcam's latest camera, the Dropcam Pro, is selling for $199. There's also a cheaper model that costs $149. The only caveats are its low resolution, lesser field of view, and decent audio quality.
According to Nest, Dropcam will continue to sell its products online and in stores, at least for now. Eventually, the Dropcam team will move to Nest's headquarters in Palo Alto, California.
"Nest has a paid-for business model and ads are not part of our strategy. In acquiring Dropcam, we’ll apply that same policy to Dropcam too," Nest added.
The deal isn't too surprising. Last month, The Information reported that Google is interested in buying Dropcam.