Google acquires Nest for $ 3.2 bn

 Google Inc has informed that it has entered into an agreement to buy Nest Labs, Inc. for a whopping $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, in a release said: "Nest's founders, Tony Fadell and Matt Rogers, have built a tremendous team that we are excited to welcome into the Google family." 

Tony Fadell, CEO of Nest commented, "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."

Tony Fadell in a blog post further wrote, "When Matt and I started Nest in 2010, we were determined to change our homes and the world around us. Starting a business focused on the lowly thermostat seemed like a crazy idea at the time, but it made all the sense in the world to us. That little device that went unnoticed and unchanged year after year on the walls of our homes was a lost opportunity to save energy and money. We knew we could do better."

 

"This decision wasn't made on a whim - Google has been in the mix in some way or another for about three years of our almost four-year history. In fact, my first meeting with Google as a Nester was before we'd launched. At the 2011 TED Conference, Erik Charlton and I huddled in a corner with Sergey Brin to show him a video and an early model of the Nest Learning Thermostat - he instantly got what we were doing and so did the rest of the Google team when we showed them. In May 2011, Google Ventures led our Series B round of financing, and in 2012, Series C. Time and time again, Googlers have shown themselves to be incredibly like-minded, supportive and as big of dreamers as we are. I know that joining Google will be an easy transition because we're partnering with a company that gets what we do and who we are at Nest -and wants us to stay that way.," he added.

 

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.

Google Exploring new territories

Clearly the initiatives Google is doing in the last few months indicate its not just a Internet company but much beyond. From self driving cars to Calico- an independent biotech company it launched last year with an intent find panacea to reverse aging and associated diseases and now a thermostat company. These are very interesting forays that makes Google a larger tech company and the beginnings of a larger Google ecosystem. Also Google makes it clear that it wants leverage the unfolding 'Internet of things (IOT) era- in which each device whether it's a Microwave oven or a Gas Stove or anything will be connected and can be governed remotely. In that order, the NEST buy can do wonders for Google and the possibilities and ramifications endless.

Reflecting on this Tony Faddel comments, "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."