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Netgear's Arlo security cameras are a hit, so much that the company is turning them into a separate business. The company has revealed that it is spinning out Arlo as a separate company, with the regulatory paperwork completed in the first half of 2018 and a public stock offering in the second.

Senior strategy VP Matthew McRae (who used to be Vizio's chief technical officer) is expected to helm Arlo when all is said and done. The separation will occur through an IPO of newly issued shares of common stock for Arlo Technologies that will hold the Arlo business.

Arlo has been a big bright spot for the company since launch. In fact, recent earnings reports for the company have singled out the security camera line as a driving force in Netgear’s financial successes, as the rest of its business remained somewhat flat. Arlo has a lineup of home and business security cameras that offer HD video quality, two-way audio, live streaming, free cloud recording, instant alerts and other features.

Assuming everything goes according to plan, Netgear anticipates that Arlo will submit a registration statement draft to the SEC by this upcoming summer. The IPO will likely be completed in the latter half of 2018.

There is fierce competition between Amazon, Nest, Ring and other big names, some of which are taking advantage of AI to tell the difference between a burglar and the family pet. The outcome could help the Arlo team thrive in a space where it would be all too easy to fall behind.

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