The deal is worth $555 million in cash.
Nest itself was purchased by Google just four months ago for $3.2 billion.
Dropcam is a cloud-based Wi-Fi video monitoring service. It was founded in 2009. Dropcam lets users place cameras throughout a home for live-viewing and recording. The cameras also include options for night vision and two-way talking with built-in microphones.
Dropcam has never disclosed sales, but it is routinely the top-selling security camera on Amazon, and it recently branched into selling in retail stores like Apple and Best Buy.
People concerned about the privacy implications of Google’s acquisition of Nest may be further unsettled by Nest’s purchase of a home surveillance company. Nest's founder Matt Rogers anticipated this issue , insisted that there’s no reason to worry. In his blog post, he says that data won’t be shared with anyone, including Google, without a customer’s permission.
Nest has run into product challenges recently. In April, Nest said it was suspending sales of its smoke alarms after it determined the units could be switched off unintentionally. The products are now back on the market.