It’s been a big morning for home security provider Scout Security (ASX:SCT), which saw its shares rip higher on the back of the ‘Amazon effect’.

The company announced its wireless security platform had been integrated into Alexa Guard — the home-monitoring system sold by global e-commerce giant Amazon.

Shares in the company jumped by around 90 per cent to 14c — the highest level since April 2019. They then went into a trading halt at 10:41am AEST “pending a further announcement”.


Distribution boost

The Amazon integration will provide a distribution pathway for the Scout Alarm security system to Amazon’s broader customer base. Amazon owns shares in Scout Security and is a “long-time partner” of the business.

The Scout Alarm will act as an addition to the core Alexa Guard platform, which connects with the Amazon Echo voice-controlled speaker to detect sounds such as broken glass and smoke alarms.

Scout CEO Dan Roberts said the Alexa integration would offer synergies based on Scout’s existing technology.

“In our view, the more deeply the devices integrate across the smart home ecosystem, the better the user experience becomes and the more utility users gain,” Roberts said.

Amazon customers will be given the option to buy Scout’s Always On+ plan for an additional $US19.99 per month (~$28), which enables functionality for a police dispatch when alerts are received.

Upon activation of its sensors, the Alexa Guard notification “will send a signal to Scout’s monitoring centre for dispatch”, the company said.