Google has announced that it will be purchasing Nest Labs, Inc. for $3.2 billion in cash.
Nest, best known for its smart thermostat, will become a part of Google in the very near future. The company launched in 2011 and launched its second product, the Protect smoke and CO2 detector, in 2013.
There had been rumors as late as last month that Google was working on its own thermostat that would compete against Nest. We're not sure if purchasing the company was always the plan, or if Google just simply decided it was easier to purchase the company than to dump money into its own research. There were leaked screenshots of the product, so we know it was at least in an advanced stage of development.
According to the brief press release, Nest will continue to operate as its own company, and Tony Fadell will remain in place as CEO. The deal is expected to be closed within a few months pending regulatory approval.
Update: Nest has released a Q&A to address some concerns.
Will Nest continue to support iOS so I can have the Nest app on my iPhone or iPad? Yes, absolutely. We'll continue supporting iOS, Android and modern web browsers so you can check in on your home and control the temperature from wherever you are.
Will Nest and Google products work with each other? Nest's product line obviously caught the attention of Google and I'm betting that there's a lot of cool stuff we could do together, but nothing to share today.
What will happen to the Nest warranties on products? No change there – we stand behind our products like we always have.
Will I still be able to find Nest products at my local retailer? You bet. We intend to continue selling through the same partners in the US, Canada and the UK.
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.