The deal is set for $555 million according to sources close to the two companies

Jun 21, 2014 15:14 GMT  ·  By

A few months back, at the end of March more specifically, it was rumored that Google was interested in buying Dropcam, a connected camera startup, for Nest Labs, which Google bought earlier this year.

Well, it looks like the two companies finally reached an understanding because Google will pay $555 million (€408 million) in cash for Dropcam.

Technically speaking, Nest is the one who made the announcement of the acquisition, which makes sense since it will be the one actually putting Dropcam to use, and not Google.

Dropcam creates Wi-Fi enabled security cameras that are sold for between $149 (€110) and $199 (€146), depending on the supported video quality. The device requires very little attention aside from the initial setup, which makes it rather popular. All you have to do is plug in the device, set it up with your local WiFi and that’s it.

The company allows you to check the feed from the cameras remotely for free. For a price (between $10 / €7.3 and $30 / €22 per month), Dropcam will also keep an archive of recorded footage on their own servers.

“Dropcam built their company from the ground up with the goal of helping people stay connected to the things they care about. In a matter of a few short years, their team has managed to create products that change how people interact with their homes. So naturally, we couldn’t help but feel our companies would be a good match,” explains Nest’s founder and chief of Engineering Matt Rogers.

Despite some obvious privacy concerns, Rogers points out that a lot of Nest users already own Dropcam and, furthermore, have asked if they could make the two devices work together. Now that the purchase has been made, the problem is moot since that’s exactly what they’re going to do.

In the future, the two companies plan to work together to reinvent products that will help “shape the future of the conscious home,” although they have a long way until reaching that point.

Once the deal closes, however, Nest will incorporate Dropcam into the way the company does business, including issues such as customer support and customer privacy. “Dropcam will come under Nest’s privacy policy, which explains that data won’t be shared with anyone,” which also includes Google, the parent company, unless the customer gives his or her explicit permission.

“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,” said Greg Duffy, Dropcam founder.

Through the acquisition completed by Nest, Google is strengthening its presence on the Internet of things market, an effort to automate the homes we live in. The company is taking small steps in this direction, but like everything else about Google, it will probably not take very long before it takes things to the next level.