It's Amazon's latest push into the smart home, following the acquisition of video doorbell maker Ring last year for $1 billion. Amazon's primary home device is its own Echo smart speaker, powered by Alexa.
In the router market, Google has a competing product called Google Wifi. Apple discontinued AirPort home routers last year, and Cisco sold Linksys to Belkin in 2013. Netgear stock was down as much as 5 percent after hours following the announcement.
Eero, based in San Francisco, was founded in 2014 by Nick Weaver, Amos Schallich and Nate Hardison with the goal of making Wi-Fi simple to use, easy to install and effective across many rooms in a house. In 2015, the start-up sold $2.5 million worth of products in its first two weeks after the company began accepting preorders, CNBC reported earlier.
"We have a shared vision that the smart home experience can get even easier, and we're committed to continue innovating on behalf of customers," Dave Limp, senior vice president of Amazon devices and services, said in a statement.
A single Eero device costs $199 and covers up to 1,500 square feet. Users can add a so-called beacon for another room for an additional $149 or can buy both combined for $299. The company also sells a security service for $99 a year.
"You have to be able to react quickly to customers, and at the same time, you have to think far enough ahead to think about what the hardware needs to do in the future," Weaver said in a 2016 interview. A graduate of Stanford University and former venture capitalist, Weaver has been fixing home networking systems since he was 10.
More than 150 people are listed as Eero employees on LinkedIn. The company raised at least $90 million from investors including Index Ventures, Playground Global and Redpoint Ventures. Eero laid off one-fifth of its employees last year, TechCrunch reported.
Amazon previously dabbled in the Wi-Fi market as an investor. In 2016, the company backed a start-up called Luma as part of a $12.5 million round. Luma, which also raised money from GV (formerly Google Ventures), was acquired last year by First Alert, a unit of Newell Brands.