What? Google announced today that it has entered into an agreement to buy Nest Labs, Inc. for $3.2 billion in cash.
Why it matters: Whit this purchase Google enters the business of the thermostats as thoughtful devices.
Nest will continue to operate under the leadership of Tony Fadell and with its own distinct brand identity. The transaction is subject to customary closing conditions, including the receipt of regulatory approvals in the US. It is expected to close in the next few months.
Nest’s mission is to reinvent unloved but important devices in the home such as thermostats and smoke alarms. In 2011 Nest launched the Nest Learning Thermostat and has recently launched Protect (Smoke + CO Alarm).
Larry Page, CEO of Google, said: “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!”
Tony Fadell, CEO of Nest, said: “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.”