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Google buys Nest for $3.2B, inching closer to thinking home

Google buys Nest for $3.2B
Google buys Nest for $3.2B
Photo by Feng Li/Getty Images

Google is set to shell out $3.2 billion in cash for the trend-setting Nest Labs and its smart homes products.

In terms of the day to day at Nest, the projections are that little will change. CEO Tony Fadell will continue to run the company, for example. Why change a good thing? Projects like the Learning Thermostat and the Protect smoke and carbon monoxide detector have already earned Nest serious notice from not only the big guys such as Google, but also everyday consumers; within weeks of the Protect launch, thousands had been sold.

For Google, the choice to purchase is obvious. The Google empire has already been in search of its own products for smart homes, but why reinvent the wheel? Nest already hit all of the marks. Google got their first Nest demo in 2001 at a TED conference, and the connection was reportedly strong from the start. Google CEO Larry Page announced via press release: “[Nest is] already delivering amazing products you can buy right now—thermostats that save energy and smoke/[carbon monoxide] 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!”

For Nest, the pairing means speed and efficiency: “Why did we decide to partner with Google? Google will help us fully realize 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,” Fadell wrote in a blog post. Nest is also protected to a much greater degree from big competitors such as Honeywell.

The acquisition, as any other, is subject to regulatory approval. That process should end within a few months at which time the deal is expected to close.