Google acquires Nest Labs for $3.2bn

By Sooraj Shah
14 Jan 2014 View Comments
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Google has agreed to acquire thermostat and smoke alarm maker Nest Labs for $3.2bn (£1.95bn) in cash.

Nest Labs was founded in California in 2010 by two former Apple executives, Tony Fadell and Matt Rogers.

Further reading

Fadell is known for working on the original iPod and the 17 iterations that followed, as well as being involved with the hardware design of the iPhone, while Rogers was an Apple engineer.

Together, they created a firm that has attempted to re-invent household items, such as a thermostat that learns what temperatures a person or household likes and builds a personalised schedule.

The firm's smoke alarm can also detect carbon monoxide and features a human voice to initially warn people that there may be some danger in the house. It connects to Nest's thermostat and can also be connected to smartphones and tablets - enabling the homeowner to receive a message if the smoke or carbon monoxide alarm has sounded.

They form part of an ‘internet of things' phenomenon, whereby everyday items are interconnected through the web.

Nest will continue to operate under Fadell, and Larry Page, CEO of Google welcomed the team to the internet giant.

"Nest's founders, Tony Fadell and Matt Rogers, have built a tremendous team that we are excited to welcome into the Google family," he said.

Fadell said that the team was "thrilled to join Google", where, according to Google, it will have 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.

The acquisition will be Google's second biggest, after its $9.4bn purchase of Motorola Mobility.

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