Amazon Has Acquired Eero, A Mesh Wi-Fi Router Company

On February 11, Amazon gave a press release saying that it is acquiring Eero, one of the first Wi-Fi router firms in the world.

The deal has supposedly shown the newest moves of Amazon to expand its influence on smart houses via a series of products from smart speakers to doorbell cameras that are connected to the Internet.

Up to now, the company has kept a secret on the financial terms in the deal; however, it also revealed that the acquisition complied with “customary closing conditions.”

PitchBook reported that, in 2017, Eero had the estimated monetary value at $215 million in a Series D funding. It was just behind two other companies including Shasta Ventures and Qualcomm.

As per the mesh networking, Eero, which has begun its operation since 5 years ago, was among the first suppliers all over the world. Instead of using 01 Wi-Fi router to offer the network coverage to a whole office or home, it chooses to bring many smaller routers.

According to Eero, each of the Eero Beacon, as a supplement of the system, will increase the coverage of Wi-Fi network by up to 1,000 square feet. That means the Wi-Fi signal can reach any corner, including the largest areas.

Each router manufactured by this company is sold at $199 in retail while one Eero Beacon with a range extender has the price of $149. Besides, it also provides the annual cybersecurity service called Eero Plus at $99.

The benefits customers gain from its service include surfing webs securely, managing passwords, and the like.

Amazon’s spokesman said that the Wi-Fi router company will keep its operation as it used to after the deal has completed. In addition, Amazon stated that it had no intention to track the web usage of its customers via made by Eero routers.

It is clear that Amazon is aiming at something bigger and more promising. Smart speakers called Echo works via the Wi-Fi signals while its recently acquired companies, Blink and Ring, focus on manufacturing smart home gadgets which need to connect to a Wi-Fi network to operate. Amazon’s acquisition of Eero will help the company to approach much nearer to smart products for homes.

Meanwhile, Eero has still kept competing with other brands in the router manufacturing world. Some of the hard rivals are Linksys and Netgear, which rolled out the mesh routers by themselves. Also, Google may be a big competitor of Eero in the manufacture of mesh Wi-Fi routers.

However, in its recent period, Eero has faced some notable issues. As a piece of evidence, in the first month of 2018, the company reportedly fired 30 workers, equivalent to around 20 per cent of its labour force at that time.