Google acquires Nest Labs for $3.2 billion in cash

By on January 13, 2014, 3:35 PM
google, larry page, acquisition, nest labs, nest, tony fadell, nest protect, nest thermostat

Google on Monday announced that they have entered into an agreement to purchase Nest Labs, Inc., makers of the popular Nest Learning Thermostat and the recently-released Protect smoke detector, for $3.2 billion in cash. In the world of startup acquisitions, this is a big one.

In a statement on the matter, Google CEO Larry Page said Nest’s founders have built a tremendous team and they are excited to welcome them into the Google family. Likewise, Fadell said they were thrilled to join Google and that with their support, Nest will be even better placed to build simple, thoughtful devices that make life easier at home and have a positive impact on the world.

The company will continue to operate under the leadership of co-founder Tony Fadell and will maintain its own distinct brand identity.

Late last year, rumors circulated that Google was in the process of testing multiple Internet-connected thermostats as part of a program known as EnergySense.

Less than two weeks ago, we reported that Nest was close to closing a new round of funding valued at $150 million. The deal would have valued the company at $2 billion so it would seem that Google has certainly paid a premium to jump into the home automation game with an established leader in Nest.

The acquisition is expected to close in the next few months and is subject to customary closing conditions including the receipt of regulatory approvals in the US.




User Comments: 13

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2 people like this | cliffordcooley cliffordcooley, TechSpot Paladin, said:

That ruins the thought of using Nest products for me.

Vrmithrax Vrmithrax, TechSpot Paladin, said:

Interesting, particularly when you consider that Nest Labs was formed by former Apple employees... Guess the big fruit company got beat to the punch on this one?

Guest said:

Yeah, just beating Apple to the punch has got to be work an extra billion.

1 person liked this | cliffordcooley cliffordcooley, TechSpot Paladin, said:

Being ex-Apple may have been a closed door to Apple. I know I might be a little reluctant to go back to a company, I spent time getting away from.

Vrmithrax Vrmithrax, TechSpot Paladin, said:

Being ex-Apple may have been a closed door to Apple. I know I might be a little reluctant to go back to a company, I spent time getting away from.

Very true, hadn't thought of it in that light! I just sort of assumed it wasn't a horrible relationship between Nest and Apple, since the Nest products are featured prominently in Apple Stores and have traditionally been touted as a very Apple-ish niche product. Have to wonder how fast that will change?

insect said:

Now if only they would make them worth the cost. I can't use a Nest with my HVAC, though I would love to. Can't control my humidifier, dehumidifier, variable fan speed, and many other features My current thermostat is difficult to use, not wifi, doesn't predict the weather, and is kind of ugly.

One day I will get the best of both worlds!

1 person liked this | JC713 JC713 said:

I hope Google doesnt ruin this great company. They have potential and Google has a chance to be part of something big as long as they dont screw it up.

Being ex-Apple may have been a closed door to Apple. I know I might be a little reluctant to go back to a company, I spent time getting away from.

Exactly.

2 people like this | Guest said:

Will google force me to join Google+ so I can change my temperature?

cliffordcooley cliffordcooley, TechSpot Paladin, said:

lol

Home appliances that would require a Google or Microsoft account to operate. I think I will pass on the dependency of needing an account with any company for such self-sufficient task.

VitalyT VitalyT said:

Just how many more good ideas will Google try to swallow before it chokes, I wonder?...

Their monopoly is spreading like a virus...

Skidmarksdeluxe Skidmarksdeluxe said:

I hope Google doesnt ruin this great company. They have potential and Google has a chance to be part of something big as long as they dont screw it up.

Being ex-Apple may have been a closed door to Apple. I know I might be a little reluctant to go back to a company, I spent time getting away from.

Exactly.

Lol. "Google has a chance to be part of something big". You must mean Nest has a chance to be part of something big.

Google didn't become the company they are today by being dunces.

Guest said:

VitalyT said:

Just how many more good ideas will Google try to swallow before it chokes, I wonder?...

Their monopoly is spreading like a virus...

Careful with how you throw around the word "monopoly". In what areas what you consider Google to be a monopoly? Learning thermostats? Ever heard of Honeywell?

tipstir tipstir, TS Ambassador, said:

Google going run adsense on these nest devices next. Or even link Nest to your Android Smartphone or tablet instead.

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