Google-owned Nest acquires Dropcam to realise its vision

Google-owned Nest acquires Dropcam to realise its vision

Google-owned Nest has announced the acquisition of home surveillance startup Dropcam. Under the terms of agreement, Nest will pay $555 million in cash to Dropcam. The deal will enable Dropcam to realise its vision by joining Nest team.

Google-owned Nest buys Dropcam

Google-owned Nest buys Dropcam

San Francisco-based Dropcam is one of the emerging names in the world of home surveillance. The company is currently offering its flagship camera for $199 while a low-resolution variant is available for $149. Contrary to traditional security camera setups, the range of connected cameras offered by Dropcam require an active Wi-Fi connection to live stream on mobile devices.

Though thermostat-maker Nest and Dropcam have two different business models, their basic “goal of helping people stay connected to the things they care about” has brought both the companies closer.

In a blog post, Dropcam founder Greg Duffy said:

“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 Both were born out of frustration with outdated, complicated products that do the opposite of making life better.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. 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.”

Once the deal closes, Dropcam will join Nest at its headquarters in Palo Alto, California. The startup will “reinvent” its connected camera units for Nest to meet the requirements of its new owner. However, camera setups will be still available online and in stores and Dropcam accounts will remain be accessible for existing as well as new customers.

Matt Rogers, Nest co-founder and VP of engineering, while explaining the future operations of Dropcam, said:

“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, 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.”

Even though Google acquired Nest in January, Dropcam will come under Nest’s privacy policy and its data will not be shared with the search giant itself or any other entity. This means that Dropcam will be based on the same paid-for business model which is currently owned by Nest.

Dropcam raised about $48 million in July by taking investments from Institutional Venture Partners, Accel Partners, Menlo Ventures and Kleiner Perkins Caufield & Byers. The addition of Dropcam in Nest’s business would enable Google to get into the business model of connected homes.

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