Netgear is so confident in its smart home strategy, that it has announced the official separation of its Arlo business. It wasn’t long ago that the company was praising its smart security cameras for aiding its bottom line, but now it seems Netgear is ready to let Arlo forge its own future, while the main company continues to concentrate on the networking industry.

The separation of Arlo should be extremely lucrative for Netgear. That’s because it plans to release less than 20% of its common stock in Arlo Technologies as part of an IPO, while it distributes the remaining 80% to its own shareholders. Of course, that’s all subject to the standard SEC and other regulatory scrutiny.

Arlo will be led by Netgear’s current SVP, Matthew McRae, who will serve as the new company’s CEO upon the completion of the IPO. That’s quite a promotion considering McRae joined Netgear just four months ago.

Despite strong competition in the security camera market, Arlo has been a population option for consumers. Its high price point has been paired with reliable performance and expandability, while favourable reviews have ensured that the smart cameras fly off the shelves.

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