Amazon.com Inc has agreed to buy video doorbell maker, the companies said on Tuesday, in what analysts see as a growing bet on delivering packages inside of shoppers' homes and on home security.
The deal valued Ring at more than $1 billion, a source familiar with the matter told Reuters. Amazon declined to discuss the terms.
Ring is set to be one of Amazon's most expensive takeovers, after its $13.7 billion deal last year for Whole Foods Market.
The world's largest online retailer believes that selling internet-connected gadgets from Kindle e-readers to its new Cloud Cam will spark more shopping on Amazon.com. Ring offers the company a popular consumer electronics brand that it might not have replicated internally.
More importantly, Ring's security devices could work well with Amazon Key, a smart lock and camera system that lets delivery personnel put packages inside a home to avoid theft or, in the case of fresh food, spoiling.
"As Amazon moves more aggressively into the grocery delivery space... we believe smart security devices will be an important factor in driving user adoption," Baird Equity Research analyst Colin Sebastian said in a note.
Amazon's Alexa Fund, which offers venture capital to companies working on voice technology, invested in the Santa Monica, California-based Ring.
Currently, Ring devices can integrate with Amazon's voice-controlled assistant Alexa. Users of Amazon's Echo Show device can say, "Alexa, show my front door" to receive a live feed of activity around their home via Ring cameras.
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