Google’s (NASDAQ:GOOG) Nest has confirmed the acquisition of Dropcam and according to a report, the deal was worth $555 million. In January, Google acquired Nest in a $3.2 billion deal and the speculation of Google-Dropcam deal surfaced in last month. Now that the acquisition is official, the rumors proved to be right, indeed.
Nest, the startup behind smart home devices such as smart thermostat and Nest Protect, has announced in its blog that it’s acquiring Dropcam that makes wireless video monitoring cameras that stores data in its own cloud-powered storage where users get notifications related to movements, sounds and more. In May 2014, Dropcam launched a Dropcam Tab sensor for $29 that sense the movement of any objects like doors and alerts users via Dropcam app.
According to a report from Re/Code, Google’s own Nest has agreed to pay $555 million to acquire Dropcam, but Nest says that it’s acquiring Dropcam on its own, outside of Google. This announcement of Nest is said to be a key role in avoiding unnecessary hassles when completing the Google-Nest $3.2 billion acquisition. Nest notes that the deal will be subjected to the US regulatory approvals. Nest has its own plans to integrate the Dropcam products and services, while the existing Dropcam customers can continue using their products and services using their existing accounts.
Google has become very aggressive company in acquiring other technology firms in every category. Some examples are the acquisition of robot-maker Boston Dynamics, satellite imaging firm Skybox, Word Lens app-maker uest Visual, Artificial intelligence firm DeepMind Technologies, Songza, WIMM and there is speculation about Google-Twitch deal worth $1 billion.
Once Google completes the two-step acquisition (Dropcam to Nest and Nest to Google), we could see the transfers of Dropcam from cloud-based infrastructure to Google Compute Engine, a public cloud by Google. Once the deal completes, users can use not only Dropcam and Dropcam Pro Wi-Fi cameras with optional Cloud Recording service, but also see Nest devices integrated into the service to remotely drop in on their house.
Dropcam has its headquarters located at San Francisco and after the acquisition, they will relocate into Nest’s office in Palo Alto. If you are worried about Google accessing your home data, Nest has added a following note in its announcement:
Dropcam’s co-founder Gregg Duffy released a statement about Dropcam’s Next Chapter:
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.
We have never seen Dropcam revealing its sales numbers and profit reports, but we can see the popularity of the company’s products that managed to climb into Amazon’s top-selling security camera segment. Moreover, Dropcam products also sells at Best Buy and Apple retail stores. Dropcam’s latest wireless camera has &199 price tag, while another version with lower resolution and less field of view is priced at$149.
According to All Things Digital, Dropcam had raised $48 million in total from Menlo Ventures, Accel Partners, Institutional Venture Partners and Kleiner Perkins Caufield & Byers. The startup had also hired ex Apple product development executive Andy Hodge, who previously worked on Apple’s first-generation iPod, along with the Nest’s founder. Nest has been founded by former Apple engineers, Tony Fadell (designer behind Apple iPod) and Matt Rogers in 2010.
Once Google’s move completes, it would be spearheading towards the global market of internet of things for homes, especially towards a complete digitally integrated home. Now when Google also has competition from Apple in this field of Home Security, we can surely expect Google to be coming out with some better solution in recent times.