Google's Nest has reached a deal to buy Dropcam, an internet camera company, for $555 million according to The Wall Street Journal's Scott Thurm:
Google/Nest buying Dropcam for $555 million
— Scott Thurm (@ScottThurm) June 21, 2014
“The teams are very well-aligned and we love the product,” Nest cofounder Matt Rogers told Re/code. “We both think about the entire user experience from the unboxing on. We both care deeply about helping people stay connected with their homes when they’re not there.”
Dropcam, which was until today based in San Francisco, plans to move to Nest's office in Palo Alto, California.
The company's cameras are used primarily for home monitoring. Its two most popular cameras sell for $199 and $149, respectively.
In addition to its hardware business, Dropcam also sells cloud storage for its videos. Last year the company said 39% of its customers pay for the video storage service.
Dropcam will probably look to Nest's success in the "Internet of Things" space for guidance. It plans to move beyond video surveillance and hopes to incorporate movement sensors into its products, according to The Wall Street Journal.
Nest's acquisition announcement was notably sparse. The release noted that Nest paid for Dropcam in cash and that the deal was "subject to adjustments."
Matt Rogers provided more insight on the deal in a blog post.
"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," Rogers said. "We’re sure this is going to be the start of something great for Nest, Dropcam, and most importantly you — our customers."