American retail giant Amazon has inked a deal to acquire smart doorbell maker Ring for more than $1bn, according to a report from Reuters.
While Amazon has yet to release any details about the deal, sources close to the situation believe that it is in the billion-dollar region - making it one of its most expensive acquisitions in the last few months.
Last year, the firm bought Whole Foods Market for $13.7bn in a bid to expand its presence into the grocery market.
GeekWire claims that once the acquisition is complete, Amazon will not change the business structure of Ring. Instead, it will continue to operate independently.
This was the case when the company acquired Zappos and Twitch. It is believed that Amazon wants to expand its line-up of connected consumer goods to encourage more people to shop on its website.
Speaking to CNBC, Ring confirmed the news. A spokesperson for the firm said: "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."
Meanwhile, Amazon said: "Ring's home security products and services have delighted customers since day one. We're excited to work with this talented team."
The purchase is the latest deal in Amazon's efforts to expand its grip on the home security market. In the past, it has teamed up with the lock makers such as Kwikset and Yale to support its new home delivery venture.
Amazon has also had dealings with Ring in the past. The connected tech firm previously raised money through the Alexa Fund. Pitchbook said the firm is worth around $760m.
In a past interview with CNBC, Ring CEO Jamie Siminoff said: "To say Amazon will not compete with you is lunacy because they compete with everybody.
"They're like nuclear power. They are very, very powerful and you can get amazing, clean energy from them but there's also the possibility of getting human radiation if you're not careful."
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