Hold onto your smart home, folks: Google just bought smart home gadget maker Nest for $US3.2 billion. In cash.
Google announced on its investor page this morning that the acquisition was going ahead:
Google 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.”
For those playing at home, Tony Fadell is the guy who was instrumental in the invention of the iPod, and went on to start Nest after his time at Apple.
Nest makes the smart thermostat which few Australians would need, and more recently, the smart fire alarm which everyone could benefit from.
$US3.2 billion in cash? That's a lot of smoke alarms.
Nest founder Tony Fadell explained the decision in a blog post about why he sold to Google:
So if things are going so well, why did we decide to partner with Google?
Google will help us fully realise 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.
Nest has also issued a Q&A about what happens to your privacy and your data if you're an existing customer. You can find that on TechCrunch.
Kelsey Campbell-Dollaghan contributed to this report