Google's Nest Labs to Buy Video-Monitoring Start-up Dropcam for $555m

Google's Nest Labs is acquiring video-monitoring and security startup Dropcam, as the technology giant looks to enhance its presence in consumers' homes.

Technology blog Re/code, which reported the deal the first, said Nest Labs will acquire Dropcam for about $555m (£326m, €408m) in cash. Nest and Dropcam confirmed the deal, but did not provide a price tag.

"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," Nest's founder Matt Rogers said in a blog.

Nest, which was taken over by Google for $3.2bn in February, said the acquisition is outside of Google and it will not share customer details with the parent company.

"Like Nest customer data, Dropcam will come under Nest's privacy policy, which explains that data won't be shared with anyone (including Google) without a customer's permission. Nest has a paid-for business model and ads are not part of our strategy," Rogers said.

Nest, which makes internet-connected thermostats and smoke detectors, will work with Dropcam following the deal to develop products and services enhancing home security.

Dropcam provides video-monitoring service connected to the internet. Its security cameras stream live videos to mobile apps and send alerts. In addition, they let users communicate to people in their homes.

The start-up was founded in 2009 by Greg Duffy and Aamir Virani, and is backed by Kleiner Perkins Caufield & Byers, Accel Partners and Menlo Ventures among others.

The deal is subject to regulatory approval.

When Google acquired Nest in its second-largest deal ever, there were concerns that the internet giant would make use of Nest's customer data. However, the companies said Google would respect Nest's privacy policy.

Nest noted that Dropcam's business will not change due to the acquisition. It will continue to sell its products online and in stores, and its customers will continue to use their Dropcam accounts.

Dropcam will relocate from its San Francisco office to Nest's Palo Alto, California, headquarters after closing the deal.