$3.2 Billion for the maker of…thermostats and smoke detectors:
Google Inc. (NASDAQ: GOOG) announced today that it has entered into an agreement to buy Nest Labs, Inc. for $3.2 billion in cash.
Nest’s mission is to reinvent unloved but important devices in the home such as thermostats and smoke alarms. Since its launch in 2011, the Nest Learning Thermostat has been a consistent best seller–and the recently launched Protect (Smoke + CO Alarm) has had rave reviews. link
Nest CEO and cofounder Tony Fadell’s explanation:
So if things are going so well, why did we decide to partner with Google?
Google will help us fully realize our vision of the conscious home and allow us to change the world faster than we ever could if we continued to go it alone. We’ve had great momentum, but this is a rocket ship.
Google has the business resources, global scale and platform reach to accelerate Nest growth across hardware, software and services for the home globally. And our company visions are well aligned – we both believe in letting technology do the hard work behind the scenes so people can get on with the things that matter in life. Google is committed to helping Nest make a difference and together, we can help save more energy and keep people safe in their homes. link
For Nest, this deal obviously will give them access to Google’s manufacturing and infrastructure muscle, not to mention, a boatload of cash. For Google, the Nest acquisition brings in a well regarded product design team, connected devices in the home, and likely a score of patents. Will Nest disappear into the Google ether, never to be heard from again? With Google stating that Nest will retain its “distinct brand identity” and Nest throwing around the “partnership” word, it looks like the immediate answer is no. We’ll bet that’s very good news for current and future Nest device owners.