What Rain Bird's Sprinkler Acquisition Means for Your Yard

Rain Bird, a large irrigation equipment company, has bought OtO Inc., a small Canadian startup that makes smart sprinkler controllers. The device won an award at CES (a major tech conference) in 2022 and was named one of TIME's Best Inventions that same year. This deal is the latest example of older, established companies buying newer tech startups to stay competitive.

What Is OtO's Smart Sprinkler?

OtO makes a controller that attaches to your garden hose. Instead of watering your lawn on a fixed schedule, it checks the weather and adjusts how much it waters. You control it through an app on your phone, so you can turn it on or off from anywhere. The device runs on solar power, so you don't need an electrician to install it. It can cover yards between 5,000 and 10,000 square feet, with a spray range of up to 40 feet.

Since its launch in 2019, tens of thousands of homeowners have bought one.

Why Did Rain Bird Buy OtO?

Rain Bird has long sold irrigation systems to golf courses, farms, and other large properties. Most of those systems require a professional to install. OtO's approach is different: it's designed for homeowners who want something simple and quick to set up.

This kind of acquisition—an old, big company buying a young, innovative one—has happened many times in other industries. When companies like Honeywell and ADT bought smart home startups a decade ago, they were trying to do the same thing: learn how to sell connected technology directly to homeowners instead of just through contractors and dealers. Rain Bird appears to be following the same playbook now.

The solar power aspect is also worth noting. Electricity prices vary throughout the day in many parts of the country now. A solar-powered system sidesteps those cost fluctuations and appeals to homeowners who want to avoid being charged more when demand is high.

What's Next for OtO?

After the acquisition, OtO began selling through Amazon in addition to its own website. This suggests Rain Bird plans to keep OtO running as its own brand rather than folding it into the main Rain Bird lineup. Keeping OtO separate allows the startup to maintain its reputation while Rain Bird learns how to sell consumer products directly.

The bigger picture is that smart irrigation is becoming more common. New products keep arriving with features like soil sensors and plant recognition. Rain Bird's acquisition gives the company a foothold in this growing segment of the market. But like most acquisitions, success will depend on whether Rain Bird can keep OtO's software team working quickly and creatively while also using Rain Bird's manufacturing and shipping advantages.

For homeowners, this deal could mean better sprinkler products in the future. It could also mean that prices and availability change as Rain Bird integrates OtO into its operations. Time will tell how that plays out.