E-commerce giant Amazon is all set to acquire home security firm Ring after both companies agreed to the terms and conditions of the deal. Although the exact valuation of the deal is not known, but media reports claim that Amazon will be paying nearly $1 billion for the acquisition deal. A report in Washington Post claims that the e-commerce behemoth already owns a minority stake in the Ring since it led a funding round for the California based startup nearly two years back.
Confirming the buyout deal, Amazon Spokesman heaped praises on Ring and its product quality. “Ring’s home security products and services have delighted customers since day one,” a statement issued by Amazon spokesperson said. “We’re excited to work with this talented team and help them in their mission to keep homes safe and secure.”
Amazon’s acquisition of Ring comes barely four months after the former launched a home security product called ‘Amazon Prime Key. These strategic moves clearly indicate that the e-commerce giant is taking a huge interest in the home security space. The move also makes lot of sense, since the American home security market is growing at a pretty rapid pace.
Ring was actually founded 6 years back in Santa Monica, Calif. The company in initial years entered the home security market with only video doorbell product that worked on Wifi. Since then it has grown steadily to emerge as one of the promising startups in the home security space. Currently, the startup offers four products in the market: Video Doorbells, Security Cams, Accessories (solar panel, chime and chime pro) and Ring video recording.
Ring, though, is still very far from achieving the unicorn status. According to media report, the Santa Monica based startup is valued around $760 million.