Amazon is acquiring WiFi router company Eero (AMZN)

Jeff Bezos.JPG

Amazon is acquiring the home mesh WiFi router company Eero, the companies announced in a press release Monday.

Eero was last valued at $215 million in a Series D in 2017, according to PitchBook. It’s backed by firms including Qualcomm and Shasta Ventures. The terms of the deal were not disclosed.

Eero was one of the pioneers of so-called mesh networking: Rather than rely on one WiFi router to cover an entire home or office, Eero asks customers to plug in several smaller routers. Each so-called Eero Beacon added to the system improves the WiFi coverage by 1,000 square feet, the company says, bringing a strong WiFi signal to all corners – even in the largest of spaces. 

“We are incredibly impressed with the eero team and how quickly they invented a WiFi solution that makes connected devices just work,” said Dave Limp, SVP of Amazon Devices and Services, said in a statement. “We have a shared vision that the smart home experience can get even easier, and we’re committed to continue innovating on behalf of customers.”

An Eero router retails at $199, while each range-extending Eero Beacon sells for $149. Beyond the routers, too, Eero offers the $99/year Eero Plus cybersecurirty service, where customers get access to premium tools for password management, secure web browsing, and other perks.

It’s easy to see where this might fit in with Amazon’s larger plans. Amazon’s flagship line of Echo smart speakers all rely on WiFi to function, and recent acquisitions like Ring and Blink both make a wide range of WiFi-connected home security gear. By acquiring Eero, Amazon gets to add another layer to its play for the smart home. 

At the same time, Eero continues to face stiff competition in the router market. Heavyweights like Netgear and Linksys have followed in Eero’s footsteps by releasing their own mesh routers, and even Google has its own Google WiFi mesh networking product. 

Eero itself has encountered some turbulence, as well. In January 2018, TechCrunch reported that Eero laid off 30 employees, representing about 20% of its workforce at the time. 

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Source: business insider

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