E-commerce giant Amazon has reached a deal to acquire Ring Inc, a California-based startup involved in the manufacture of smart doorbells.
“Ring’s home security products and services have delighted customers since day one,” an Amazon representative said in a joint statement with Ring, Bloomberg reports.
“We’re excited to work with this talented team and help them in their mission to keep homes safe and secure.”
The companies did not disclose the financial terms, but a source told Bloomberg that the deal is worth about US$1 billion.
The acquisition will help Amazon expand further into the consumer market, including providing security for package deliveries, the report noted.
Ring makes video doorbells and security cameras that connect to users’ phones or computers, letting them see and speak to anyone on their property from afar.
The company also sells related products such as security systems and smoke detectors.
“We’ll be able to achieve even more by partnering with an inventive, customer-centric company like Amazon,” Ring said in the joint statement.
Amazon has been pushing further into consumers’ homes through connected devices such as its Echo smart speaker with the voice-activated assistant named Alexa.
Last year, the world’s largest online retailer introduced a new service called Amazon Key, which incorporates a smart lock that can open doors for verified delivery drivers to deposit packages directly into a shopper’s home.
The Ring acquisition puts Amazon in more direct competition with security camera makers such as Nest Labs, Honeywell International and Canary Connect, Bloomberg noted.
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