Netgear announced this afternoon that it plans to spin off its Arlo wing into a standalone business. The networking hardware giant’s board of directors has unanimously approved the decision and plans to have the separation to be completed by the second half of this year.
Netgear is planning an IPO as part of the process, issuing less than 20-percent of common stock in the process and retaining interest on the rest. Of course, all of this is subject to the standard SEC and other regulatory scrutiny. Once completed, Netgear SVP will step in as the CEO of the newly formed company. It’s quite the promotion, with the executive having only joined up four months ago.
Arlo has been a big bright spot for the company since launch. In fact, recent earnings reports for the company have singled out the security camera line as a driving force in Netgear’s financial successes, as the rest of its business remained somewhat flat.
The line is a relatively new addition, but it’s come to be a dominating factor in the connected security camera space here in the States. And line’s offerings have been equally well reviewed in spite of higher price points, clearly bringing a breath of fresh air to Netgear’s decidedly staid world of networking hardware.
Of course, the space is bound to only grow more competitive as the connected home gains more relevance in the U.S. market. The company’s competing with startups like Canary, along with larger players like Google (through the Nest Cam) and Amazon, which recently entered the category with the ultra affordable Cloud Cam.
The Arlo family, meanwhile, has grown at a rapid clip, including the LTE-enabled Arlo Go outdoor security camera and Arlo Baby, featured at the top of the post with the adorable bunny hat.