Reportedly, Amazon.com, Inc. (AMZN - Free Report) acquired Santa Monica, CA-based Ring, a well-known developer of internet connected video doorbell and camera devices. The deal will help Amazon expand in the home security market and improvise its in-house delivery services.
Ring’s doorbells with stick up cameras enable people to monitor properties and answer door calls from anywhere by talking or texting the person at the door via smartphone, tablet and PC.
Per Reuters, Ring’s devices are compatible with Amazon key, the company’s smart lock and camera system, which allow “delivery personnel put packages inside a home to avoid theft or, in the case of fresh food, spoiling.” The devices can also be integrated with Amazon’s voice-controlled digital assistant, Alexa.
Amazon is reportedly paying more than $1 billion for Ring, which has raised $443.9 million so far. Notably, Amazon’s Alexa fund has also invested in the startup.
Strategic Acquisitions: Key Catalyst
Acquisitions have played an important role in charting Amazon’s growth trajectory. According to Reuters, Ring is set to be the company’s “most expensive deal”, after Whole Foods acquisition.
The latest deal is in sync with the company’s focus on expanding its product portfolio for the home automation market.
According to data from marketsandmarkets.com, the global home automation system market is expected to reach $79.57 billion by 2022, a CAGR of 11.3% between 2016 and 2022. The increasing importance of remote home monitoring has been cited as one of the primary reasons behind this strong growth.
Amazon entered into home security market with the launch of Echo devices in November 2014. In December 2017, the company acquired Blink, a startup that offers wireless security cameras and doorbells. We note that the addition of Ring’s product further strengthens Amazon’s home security product offerings.
Currently, Amazon has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>