Amazon is about to expand its smart home offerings in an important way. The company has just announced its intention to acquire the start of the home mesh router based on the Bay Area, Eero. It's a pretty clear fit for the online retailer, as it presses to make Alexa a connected home feature.
The move also makes sense for Eero, a five-year-old who, despite being early in the home mesh router game and attracting some high-profile investors, has had problems. This time, last year, the company laid off 30 employees, roughly one fifth of its workforce.
Amazon certainly has deep pockets, and the addition of Alexa to the routers of Huawei and Netgear last year shows that this category can be viable. It makes sense, since these mesh routers that stretch in coverage, like echo points, are designed to be connected to all rooms in the house.
Amazon has been collecting a number of new high-profile home automation companies in recent years, including Ring and Blink, as it seeks to launch its own ecosystem of smart home Alexa. In many cases, Amazon has chosen to retain the brand of new companies, which could bode well for the future of the name Eero, although the company does not have the same kind of recognition as Ring.
"We are incredibly impressed with the eero team and how quickly they invented a WiFi solution that makes connected devices work," Amazon technician Dave Limp said in a press release. "We have a shared vision that the smart home experience can be even easier, and we are committed to continuing to innovate on behalf of customers."
The agreement is still waiting for all the standard regulatory approval. The details of the acquisition have not yet been revealed.