Amazon said Monday that it is acquiring Eero, a developer of Internet routers that can be easily connected at home. Terms of the deal were not disclosed.
In the router market, Google has a competing product called Google Wifi. Apple discontinued AirPort's home routers last year and Cisco sold Linksys to Belkin in 2013. Netgear's stock fell to 5 percent after hours after the announcement.
Eero, based in San Francisco, was founded in 2014 by Nick Weaver, Amos Schallich and Nate Hardison with the goal of making Wi-Fi easy to use, easy to install and effective in many rooms of a home. In 2015, the start-up sold $ 2.5 million in products in its first two weeks after the company began accepting pre-orders, CNBC reported previously.
"We have a shared vision that smart home experience can be even easier, and we are committed to continuing to innovate on behalf of customers," Dave Limp, Amazon's senior vice president of devices and services, said in a statement.
A single Eero device costs $ 199 and covers up to 1,500 square feet. Users can add a beacon call for another room for an additional $ 149 or can buy both combined for $ 299. The company also sells a security service for $ 99 per year.
"You have to be able to react quickly to customers and, at the same time, you should think long enough to think about what the hardware should do in the future," Weaver said in a 2016 interview. A University graduate Stanford and former venture capitalist, Weaver has been fixing home network systems since he was 10 years old.
More than 150 people are listed as Eero employees on LinkedIn. The company raised at least $ 90 million from investors, including Index Ventures, Playground Global and Redpoint Ventures. Eero fired a fifth of its employees last year, TechCrunch reported.
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