Google Acquires Nest Labs For $3.2B

Now Google is back with the acquisition news. It has stepped forward recently to purchase smart thermostat and smoke alarm maker Nest Labs for $3.2 billion. Nest was co-founded by former Apple employee Tony Fadell. This deal is expected to close in the next few months.

Google CEO Larry Page said in a press release that “Nest’s founders, Tony Fadell and Matt Rogers, have built a tremendous team that we are excited to welcome into the Google family. They’re already delivering amazing products you can buy right now — thermostats that save energy and smoke/CO alarms that can help keep your family safe. We are excited to bring great experiences to more homes in more countries and fulfill their dreams.”

Nest started their products on learning thermostat has been a constant best seller since 2011, while its recently-launched Protect (Smoke + CO Alarm) has been in news.

Fadell will be the CEO as he was, said in a blog post that “Nest will continue to be Nest, with its own distinct brand identity. Google has the business resources, global scale and platform reach to accelerate Nest growth across hardware, software and services for the home globally, and our company visions are well aligned – we both believe in letting technology do the hard work behind the scenes so people can get on with the things that matter in life. Google is committed to helping Nest make a difference and together, we can help save more energy and keep people safe in their homes." 

He also added that "At the 2011 TED Conference, Erik Charlton and I huddled in a corner with (Google co-founder) Sergey Brin to show him a video and an early model of the Nest Learning Thermostat – he instantly got what we were doing and so did the rest of the Google team when we showed them.Google not only showed an interest in the young company, but invested in it as well. Google Ventures led the firm’s Series B round of financing in May 2011 and its Series C round in 2012. Time and time again, Googlers have shown themselves to be incredibly like-minded, supportive and as big of dreamers as we are,” Fadell said. “I know that joining Google will be an easy transition because we’re partnering with a company that gets what we do and who we are at Nest — and wants us to stay that way.”

He also indicated that the staffing will not be affected by the acquisition. Rogers, for instance will remain in his current role as head of engineering. Fadell said although business was booming for Nest, he knew the partnership with Google would enable the company to accelerate its innovation pace and extend its reach to its target users. Fadell said he has been in contact with Google in one form or another for the past three years and would definitely .