Netgear to divest business that makes Arlo security cameras

Netgear is to split its Arlo security camera business into a separate company. According to Netgear, this will benefit both Netgear and the new company, which is going public as Arlo Technologies.

Netgear disclosed the split when it presented its past quarter’s figures and in a press release. The company says Arlo is strong enough to operate on its own and will benefit from the focus, flexibility and financial resources that come with a divorce. The same goes for Netgear without the Arlo cameras, the company said.

The split is accompanied by an IPO of the new company Arlo Technologies. Netgear expects to sell less than twenty percent of the shares and holds a majority stake itself. Matthew McRae becomes CEO of Arlo Technologies. He has been with Netgear for four months as senior vice president of strategy. The IPO is expected to take place in the second half of this year, after approval from the US stock market watchdog SEC. The board of directors also still has to give a final approval.

The quarterly figures show that Netgear achieved a turnover of more than 378 million dollars with the Arlo division in the past year. That’s a significant increase from a year earlier, when revenue from Arlo products was about $188 million.