Amazon Inc (NASDAQ:AMZN) has bought home security camera and video doorbell maker, Ring, in a deal reportedly valued at more than US$1bn.
The e-commerce giant on Tuesday confirmed the acquisition of Ring but the financial details were not disclosed. Reuters reported that the deal could be worth US$1bn.
Amazon’s venture capital for voice technology arm, the Alexa Fund, had previously invested in Ring as part of its plan to expand its in-home offerings.
Credit Suisse analyst Stephen Ju said Amazon could add its new keyless entry technology, Key, into Ring’s video doorbell products.
"We believe the product/strategic rationale for the near-to-medium term would be to integrate Ring.com's products with Amazon Key to decrease friction on order delivery by allowing users to let couriers inside their homes," Ju said.
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Key, launched in October, allows for the delivery of packages inside shoppers’ homes when they are not in to answer the door.
The Ring Video Doorbell 2 already integrates with Amazon’s voice-controlled assistant Alexa. Users of the Amazon Echo can ask the smart speaker to show them their front door with the Ring video doorbell.
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GBH Insights analyst Daniel Ives thinks the Ring deal is a “smart strategic acquisition” for Amazon. It gives Amazon “a clear window of opportunity to become the entrenched leader in the nascent smart home world”, he said.
Amazon’s in-home offerings also include the Cloud Cam indoor security camera, which forms part of Key to avoid theft. Last April it launched Echo Look, a voice-controlled selfie camera that helps people choose what to wear.