Amazon (NASDAQ:AMZN) is acquiring Eero, a developer of internet routers that can be easily connected in the home. Terms of the deal weren't disclosed.
It's Amazon's latest push into the smart home derby, following the acquisition of video doorbell maker Ring last year for $1 billion. Amazon's primary home device is its own Echo smart speaker, powered by Alexa.
In the router market, Google (NASDAQ:GOOGL) has a competing product called Google Wifi. Apple (NASDAQ:AAPL) discontinued AirPort home routers last year, and Cisco (NASDAQ:CSCO) sold Linksys to Belkin in 2013. Netgear (NASDAQ:NTGR) stock was down as much as 5% after hours following the announcement.
Eero, based in San Francisco, was founded in 2014 with the goal of making Wi-Fi simple to use, easy to install and effective across many rooms in a house. In 2015, the start-up sold $2.5 million worth of products in its first two weeks after the company began accepting preorders.
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 laid off one-fifth of its employees last year.
Amazon previously dabbled in the Wi-Fi market as an investor. In 2016, the company backed a start-up called Luma as part of a $12.5 million round. Luma, which also raised money from GV (formerly Google Ventures), was acquired last year by First Alert, a unit of Newell Brands.
Amazon shares vaulted $18.90, or 1.2%, to $1,609.90
