Google Acquires Home Tech Start-Up Nest For $3.2 Billion

After Yahoo, Google has made its first acquisition of 2014. The internet giant this time has acquired home automation company Nest for $3.2 billion. Launched by Tony Fadell and Matt Rogers in 2010, Nest makes smart thermostat and smoke detectors. Nest sells its thermostats on the promise of saving homeowners energy by learning their daily habits and adjusting temperature accordingly. And it set out to make smoke detectors radically easier to use.

Nest Google

“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,” Fadell said in a statement.  According to the terms of the acquisition, Nest will maintain a separate brand identity. Fadell, who worked on the original iPod at Apple, will continue to lead the company.

The connected home space was a major theme at CES last week with LG and Sony launching products that will change the way we use electronic gadgets this year. Google Ventures had previously invested in Nest via its venture capital arm, leading two rounds in financing for the start-up in 2011 and 2012. Speaking about the acquisition, Larry Page, Co-Founder and CEO of Google said in a statement,“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!”

Prior to this Google had acquired Motorola Mobility in 2012 which was another hardware company. It will be interesting to see how Google teams up with Nest to push into this space. Will the company dive into the connected home market?

 

Image Source | WSJ

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