The deal gives Amazon another tool as it begins to deliver packages inside homes.

Amazon is buying Ring, the smart doorbell maker, in Amazon’s second-largest acquisition ever.

Ring is now being bought for somewhere between $1.2 billion and $1.8 billion, according to sources. The startup had just recently authorized a fundraising round that would have valued the company at about $1 billion. Both companies confirmed the acquisition, which was first reported by GeekWire.

The device gives Amazon another tool as it begins to deliver packages inside homes. The company has been using a $120 internet-connected security camera called Amazon Cloud Cam for Prime members.

“Ring is committed to our mission to reduce crime in neighborhoods by providing effective yet affordable home security tools to our Neighbors that make a positive impact on our homes, our communities, and the world,” Ring said in a statement. “We’ll be able to achieve even more by partnering with an inventive, customer-centric company like Amazon.”

The only bigger acquisition for Amazon is, of course, its $14 billion purchase of Whole Foods last year. This deal is being described as bigger than the previous second-largest deal in Amazon history — it purchased Zappos for $1.2 billion in 2009.

Ring had raised about $450 million in cash from venture capitalists like True Ventures, Upfront Ventures, Kleiner Perkins and Amazon’s Alexa Fund.


Recode – All Go to Source
Author:

Theodore Schleifer

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