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Amazon is acquiring WiFi router company Eero, which helps blanket your entire home with strong wireless internet signal

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Amazon is acquiring WiFi router company Eero, which helps blanket your entire home with strong wireless internet signal

Amazon CEO Jeff Bezos.

Reuters

  • Amazon is acquiring Eero, the pioneering Wi-Fi router company. Terms of the deal were not disclosed.
  • Eero makes “mesh” Wi-Fi routers, which help blanket even the largest spaces with a strong wireless-internet signal.
  • It’s the latest big-ticket Amazon smart-home acquisition, following home security companies Blink and Ring.
  • Eero continues to face strong competition from the likes of Netgear, Linksys, and even Google.

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

The deal is the latest indication of Amazon’s expansive effort to control the electronic “plumbing” of modern homes and lifestyles, adding to a lineup of Amazon products that includes everything from smart speakers to internet connected doorbell cameras.

Amazon did not disclose the financial terms of the deal, though it noted the deal was subject to “customary closing conditions.”

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

The five-year-old company was one of the pioneers of so-called mesh networking: Rather than rely on one Wi-Fi 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 Wi-Fi coverage by 1,000 square feet, the company says, bringing a strong Wi-Fi signal to all corners – even in the largest of spaces.

“We are incredibly impressed with the eero team and how quickly they invented a Wi-Fi solution that makes connected devices just work,” 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.”

The Eero router.
Eero

An Eero router retails at $199, while each range-extending Eero Beacon sells for $149. In addition to the routers, 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 Wi-Fi to function, and recent acquisitions like Ring and Blink both make a wide range of Wi-Fi-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 Wi-Fi 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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