Google has just announced on that they have entered into an agreement to buy Nest Labs, Inc. for $3.2 billion in cash. You've probably heard us talk about Nest before, but their mission is to reinvent unloved devices like thermostats and smoke alarms. It launched back in 2011, the Nest Learning Thermostat has been a consistent best seller, along with the Protect which launched recently. For those that don't know, the Protect is a Smoke and CO alarm.
Google's CEO, Larry Page stated "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!" While Nest's CEO, Tony Fadell had this to say, "We're thrilled to join Google. With their support, Nest will be even better placed to build simple, thoughtful devices that make life easier at home, and that have a positive impact on the world."
According to Google's press release, nest will continue to operate under the leadership of Tony Fadell, and with their own distinct brand identity. Kind of like how Motorola is owned by Google, but they still have their own distinct brand identity. The transaction is subject to customary closing conditions as usual, which includes the receipt of regulatory approvals in the US. The deal is expected to close within the next few months.
Kind of interesting to see Google go after and buy Nest, I didn't really see this coming. But I'm not surprised they did purchase them. As Google seems to want to be everywhere, and now they're looking at smoke alarms in your house. This could be part of the Android @Home stuff we saw a few years ago at Google I/O? Who knows.