Confirmed: Google buys Nest for $3.2 billion
Monday, January 13, 2014 @ 4:13pm
| Google has acquired Nest, maker of the Nest smart digital thermostat and a smart smoke detector. This according to Re/Code, which reported on Monday that the search giant had picked up the smart appliance manufacturer for $3.2 billion. Nest, founded by Tony Fadell, one of the creators of the iPod, has been growing in popularity, with its iPhone and iPad-compatible devices now sold in Apple's retail stores, as well as on its website.
Google confirmed the acquisition on Monday in a letter to investors. The search giant affirmed the $3.2 billion price tag, saying that the deal will be done for cash, with Fadell staying on as a leader of the unit. Google founder Larry Page praised Fadell's team at Nest, saying that Google was excited to bring them into the fold.
"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!"
Fadell reciprocated Page's enthusiasm, saying the team was "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."
Reportedly, Nest will operate within Google much in the way that Motorola does, as a separate but owned company. It will retain its own brand, and it will continue to offer apps for both iOS and Android.