Amazon.com Inc. (AMZN) is already a constant on the doorsteps of many American households, and with its most recent deal, the company is looking to become a fixture of your doorstep.
Ring, a company that appeared as a contestant in 2013 on CNBC's "Shark Tank" as DoorBot but left without a deal, has been acquired by Jeff Bezos' tech and retail behemoth, the company confirmed in an email. Multiple reports peg the value at above $1 billion.
The deal comes after the Santa Monica, Calif.-based start-up was valued at $1 billion in late 2017, founder Jamie Siminoff told CNBC in November.
Ring most recently landed $109 million in venture funding from investors including Qualcomm Corp.'s (QCOM) venture arm Qualcomm Ventures, Goldman Sachs & Co. (GS) , DFJ Growth and Richard Branson's Virgin Group. Amazon's Alexa Fund, which invests in Alexa-powered devices and services, was also a previous investor in the company which has raised more than $200 million in venture funding, according to Crunchbase.
Ring makes smart doorbells that allow customers to see who is at their door when the doorbell is pressed. The company says its mission is to reduce crime by creating an automated neighborhood watch system.
"We'll be able to achieve even more by partnering with an inventive, customer-centric company like Amazon. We look forward to being a part of the Amazon team as we work toward our vision for safer neighborhoods," a Ring spokesperson said in a statement.
For Seattle-based Amazon, the deal appears to be another step to get more data around its users, get deeper into the homes of customers and to help better deliver packages in the future.
Ring CEO Siminoff appeared on a 2013 Shark Tank episode seeking $700,000 for a 10% stake in the company.
For Amazon, the deal is one of its largest ever. It acquired Zappos.com in 2009 for almost $1 billion and of course, in 2017, acquired Whole Foods Market Inc. for $13.7 billion. In August 2014, Amazon shelled out $970 million for Twitch, one of the largest streaming platforms for gamers.
The acquisition comes as companies including Alphabet Inc. (GOOGL) and Apple Inc. (AAPL) are all vying for a piece of the smart-home economy, with mixed success.
Google acquired smart thermostat maker Nest in 2014 for $3.2 billion, then in 2016 decided to separate the company from its core. In early February 2018, Google announced plans to bring Nest back into Google umbrella. Apple meanwhile has been pitching its HomePod device, to mixed reviews.
Jim Cramer and the AAP team hold positions in Amazon and Goldman Sachs for their Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells AMZN or GS? Learn more now.
Editor's note: This article was originally published by The Deal, a sister publication of TheStreet that offers sophisticated insight and analysis on all types of deals, from inception to integration. Click here for a free trial.