9:00 AM — On Monday, Google officially announced that they will be purchasing the popular company Nest Labs for $3.2 billion cash. The two companies reportedly reached a deal for that amount, and you can read more about it in the press release below. Nest Labs is the smart thermostat maker founded by former Apple executive Tony Fadell, who is credited with being the godfather of the iPod. This purchase will cost Google an all-cash transaction where the company will pay the full amount in cash.
Google CEO Larry Page says that “Nest’s founders, Tony Fadell and Matt Rogers, have built a tremendous team that we are excited to welcome into the Google family.” What Page says is true since Nest products have gained a lot of mainstream attention due to the level of home technology they have introduced. Page continues, “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!”
Now that Google has acquired Nest Labs, you may be wondering why the company made this purchase in the first place. First, if you think about it, Nest has been one of the most impressive hardware startups to date. Given Rogers and Fadell’s past history with Apple, both have years worth of experience that allow them to develop and think like the minds at Apple.
Google has been pushing further into the home, trying to make things easier for families. According to CrunchBase, Google Ventures helped lead Nest’s series B funding round in 2011, with the company having raised a total of $230 million. The company has been increasingly involved with the forefront of “Internet of Things.” The Internet of Things is expected to be a $14.4 trillion opportunity over the next decade for companies that participate in it, according to Cisco presentation, so Google of course wouldn’t want to miss out. Google constantly collects data, best utilizes it, and allows for consumers to make better, smart choices in their daily live. Of course Google has been nailed in the head with fines left and right for infringing on peoples rights, but that has not stopped the company from advancing their plans.
The push in a connected-home is not that far away. Other companies such as Samsung are already creating internet-capable products like washing machines, dish washers, and ovens. Whether this category will explode with in the next years is currently unknown, but we’ll find out soon enough, won’t we?
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Google to Acquire Nest
MOUNTAIN VIEW, CA – JANUARY 13, 2014 — 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.
Larry Page, CEO of Google, said: “Nest’s founders, Tony Fadell and Matt Rogers, have built a tremendous team that we are excited to welcome into the Google family. 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!”
Tony Fadell, CEO of Nest, said: “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.”
Nest will continue to operate under the leadership of Tony Fadell and with 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.