The Avanti Group the equities research house based in Tokyo, providing professional trading and investment research solutions to institutional and private investors across the globe have recently drawn their investor’s attention to the $555 million deal for Dropcam Inc that will be an all cash affair which will remain subject to adjustments according to a statement released regarding the deal by Nest.

Dropcam, which manufactures in-home cameras that can be monitored remotely on the owners internet devices including smart phones from anywhere in the world. The products would see Nest’s entry into providing home security devices. Nest is best known for its lineup of internet connected digital thermostats and smoke alarms that are also capable of being monitored and controlled from mobile internet devices.

The acquisition of Dropcam by Nest shows how the company which was itself, earlier this year bought by Google for about $3.2 billion, is moving towards becoming a larger provider of internet connected products. This trend where increasingly more and more devices and appliances are connected to the Web, allowing data to be exchanged and control by mobile devices, has been dubbed by speculators as the ‘internet of things’.

“The fit between Nest and Dropcam seems to be a solid one in terms of their shared vision for connected home offerings and the price paid is a relatively modest one given the growth that Nest can expect to gain from this purchase, especially as it opens the door for them into internet based home security solutions,” said Murakami Hiroto, Senior Vice President of Global Investment for The Avanti Group.

Founded in 2009, Dropcam allows its users to place cameras throughout their homes for both live-viewing and recording applications. Options supported by the company’s cameras include night vision and two-way communications via built-in microphones. Backers of the San Francisco based Dropcam include Accel Partners and Menlo Ventures.

“Some concerns regarding privacy, Google possibly having data about peoples home environments, not just their existing online profile, have already been raised and responded to. This was a minor rebuff given the overwhelming number of consumers who simply do not examine considerations like this, seeing only the ultimate convenience that such offerings will provide to them,” concluded Murakami Hiroto, Senior Vice President of the Global Investment department at The Avanti Group.

The Avanti Group is an equity research house providing research and analysis outsourcing solutions for institutional financial traders worldwide, founded in early 2003.