Home automation company Nest Labs has bought Dropcam, a popular home monitoring camera startup that makes smart smoke detectors and thermostats.
The deal is worth $555 million and was signed Friday, according to CNET. The deal has not closed yet.
Dropcam's products will work with the Protect smoke detector and Learning Thermostat, Nest's current smart phone products. Nest will also include the company's products in its privacy policy.
Nest was acquired by Google four months ago for $3.2 billion, but it says its deal with Dropcam is its own, Re/code reported. The San Francisco-based Dropcam team will move to Nest's headquarters in Palo Alto.
"The teams are very well-aligned and we love the product," Matt Rogers, co-founder of Nest and VP of engineering, said in an interview Friday. "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 is the best-selling security camera on Amazon on a routine basis. The company recently started selling its cameras in Apple, Best Buy and other retail stores.
Nest was founded in 2010 by Rogers and Tony Fadell, former executive at Apple and colleague of Rogers, and has since gained approval for the new design and strong software it added to home devices, CNET reported. Dropcam was founded in 2009 by Aamir Virani and Greg Duffy. The two engineers created the company out of camera software they developed for AXIS, a technology company in Sweden.
Dropcam had raised $48 million in funding from investors before the deal with Nest, Re/code reported. The investors include Accel Partners, Institutional Venture Partners, Kleiner Perkins Caufield & Byers and Menlo Ventures.
The camera maker's three products are the $199 Dropcam Pro, the $149 Dropcam, and the $29 Dropcam Tab, CNET reported.
Dropcam designed its three devices to use video cameras and motion sensors to help customers keep track of home activity.
