Amazon has acquired a U.S. tech startup for reportedly $1 billion. Called Ring, the startup, which develops smart home systems, has one of its largest development centers in Ukraine.
Ring makes high-tech doorbells, and by purchasing it on late Feb. 27, Amazon expects to improve its parcel delivery service.
Ring doorbells record live video of the homeowner’s doorstep, then wirelessly broadcasts it to their smartphones so they can greet and talk to visitors remotely.
According to reports by news agency Reuters, Amazon paid more than $1 billion to buy Ring, but both buyer and seller have declined to comment on the price.
JUST IN: Amazon has agreed to acquire https://t.co/C3cz9IFjqe for more than $1 billion – source $AMZN pic.twitter.com/7o3jAlRvVk
— Reuters Tech News (@ReutersTech) February 27, 2018
Opened in 2016, Ring’s Kyiv office has been involved in developing both software and hardware for Ring, and provides online support. Ring would not comment on the future of its Ukrainian office after the agreement. It hires 450 people in Kyiv.
Founded in 2012, Ring has more than 1,000 employees worldwide, and about one million customers, the Los Angeles Times reported last year.
The company sold products worth $155 million in 2016 but has still to break even.
The startup attracted $109 million in January 2017 in its sixth investment round. The round brought the company’s market capitalization to an estimated $1 billion, market experts said.
In total, the company has raised $209 million in investment, according to Crunchbase. Goldman Sachs, Virgin Group, Qualcomm Ventures and Amazon Alexa Fund all put in money, part of which was used to develop Ring’s Kyiv office.
Amazon already makes products for smart homes, such as its “Cloud Cam” security camera and voice-controlled devices like the Echo speaker, which users can command to perform tasks such as turning on and off lights, playing music, and searching the web.
U.S. technology website VentureBeat said the agreement could help in the automation of Amazon’s delivery services. It may also be integrated with Amazon’s smarthome device Alexa.
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