Scout Security share price soars 91% on new Amazon deal

The Scout Security share price surged 91% today before being placed in a trading halt. This followed news of a deal with tech giant Amazon.

Phil Harpur

Phil Harpur has been contributing to Motley Fool Australia as a Freelance Writer since late 2019. Phil has spent the last 25 years working as a Senior Technology Analyst for some of the leading global technology research firms. Over the years, his market insights have been quoted in publications such as the AFR, SMH and the Australian, and he has appeared on business TV programs including Bloomberg, CNBC, Fox Business and the ABC. Phil is passionate about the share market and investing. He has post-graduate qualifications in Applied Finance and Investment from the Securities Institute of Australia. In his spare time, Phil likes to chill out listening to his favourite jazz artist or hanging out at the beach.

Published August 19, 2020 1:30 pm AEST

The Scout Security Ltd (ASX: SCT) share price was up by a whopping 90.8% today before being placed in a trading halt pending a further announcement. The surge in the Scout Security share price followed an announcement by the company that its security system has been integrated with an Amazon.com Inc (NASDAQ: AMZN) device.

home security camera and smart phone representing scout security share price — Image source: Getty Images

What does Scout Security do?

Scout Security sells a self-installed, wireless home security system, that is named 'Scout Alarm'. The system has the capability of being integrated with other Internet of Things (IoT) devices within the home environment.

What did Scout Security announce today?

Scout announced to the market today that its security system has been integrated with Amazon's Alexa Guard offering and is now immediately available to its customer base. Amazon is currently a shareholder of Scout and has been a long-time partner of the home security system provider.

Amazon's Alexa Guard system utilises Amazon Echo devices to provide a range of home monitoring features. These include detecting the sound of breaking glass, smoke alarms and detecting carbon monoxide. Alexa Guard is capable of then sending 'Smart Alerts' to home users when these sounds are detected. The Alexa Guard system is now integrated with the Scout Alarm, which can, in turn, despatch police to the home when an alert is triggered.

Alexa Guard is capable of being activated on a range of Amazon devices. These include the Echo, Echo Show, Echo Spot, Echo Dot, Echo Plus and the Echo Input.

Commenting on the Amazon Guard integration, Scout CEO, Dan Roberts, said:

We believe that the Scout platform has some of the best-in-class integrations for smart home security and the integration with Alexa Guard further enhances our capabilities. The more deeply the devices integrate across the smart home ecosystem, the better the user experience becomes and the more utility users gain, in our view. Amazon Guard is a unique capability that can offer another layer of security to our users and we're excited to make it available to our customer base.

How has the Scout Security share price been performing?

The Scout Security share price fell heavily in the early phase of the coronavirus pandemic, however rose strongly during July. With its 91% gain today, the Scout Security share price was asking 14.5 cents prior to the pause in trading taking effect.

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