Google to Purchase Nest for $3.2 Billion

By Gilbert Falso :: 4:21 PM

Search and services giant Google has purchased the company behind the smart Nest thermostat and smoke detector devices. The purchase price was $3.2 billion, in an all-cash deal.

In a release about the deal, Larry Page, Google CEO 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!”

Nest is headquartered in Palo Alto, California, and was founded in 2010. Both co-founders, Fadell and Rogers, were former engineers at Apple. More than 130 employees worked for the company by the end of 2012.

The first Nest product, the Nest Learning Thermostat, hit the market in 2011. In October 2013, Nest announced the Nest Protect, a smart smoke and carbon monoxide detector.

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.”

Google will allow Nest to operate under the leadership of Fadell, and the company will keep its own distinct brand identity. The transaction is subject to the usual closing scrutiny, including the receipt of regulatory approvals in the United States.