Google Buys Nest For $3.2B In Cash
Posted: January 14, 2014 by Emily Brown
In what's said to be the second largest deal in Google's history (right behind their $9.4bn acquisition of Motorola Mobility), the search engine giant is to acquire Nest Labs, a home gadget maker, for $3.2 billion in cash.
Google revealed its acquisition in a press release, where it was stated that Nest's mission involves reinvention of the not-so-favorite but important household devices like thermostats and smoke alarms. Pretty close to the way Apple has reinvented the music player and the mobile phone with its iPod and iPhone devices, Google will use Nest to revive some consumer gadgets.
It's also a perfect way for Google to improve their Internet of things strategy as Nest's products are internet-connected and they can interact with other home appliances or even learn and adjust to user's habits.
As a plus comes the fact that both Nest founders, Tony Fadell and Matt Rogers, will join Google's team. Thus, Nest will continue to operate as its 'own brand identity' under Fadell's leadership.
Appreciating their work, the chief executive of Google, Larry Page, paid tribute to Fadell and Rogers in the press release saying:
"They're already delivering amazing product 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!"
However, the deal is not officially closed as it has to receive regulatory approval first.