Google's Nest Labs to acquire home-monitoring camera startup Dropcam

Google's Nest Labs is set to acquire home-monitoring camera startup Dropcam for about $555 million in cash, according to technology blog Re/code.

The confirmation of the acquisition came in separate blog posts from Nest and Dropcam on Friday, but no price tag was mentioned.

Google, which is now expanding into new markets declined to comment. The internet search giant's interests now range from high-speed internet access to advanced research on self-driving cars and robotics.

Dropcam is known for its cloud-connected security camera that saves the footage to a cloud service, allowing users to check the recording anytime, anywhere, on compatible devices.

The company, which last year raised $30 million is also known to have improved video analysis technology with the Dropcam Pro device, and improved the field of view and software which alerts users on movements.

With its latest acquisition, Google is moving deeper into home security, along with its Nest purchase.

Google which bought Nest for $3.2 billion earlier this year said Nest would continue to operate independently, under the leadership of its founder, Tony Fadell, an ex-Apple employee and popularly known as ''Father of the iPod'' (See: Google to acquire Nest Labs, maker of smart devices).

Google's latest deal is being touted as a foray into the fast-growing "smart" home automation market, at a time when consumer appliances and internet services are merging. However, concerns have also been voiced about the privacy implications for Google from the deal, especially since it already collects huge amounts of data about users' online habits.

According to Nest's blog post, Dropcam would adopt its privacy policy post acquisition, meaning data would not be shared with any other firm, including Google, without a user's permission.