Google has recently announced to acquire Ca, USA based Nest Labs, the maker of smart thermostats and smoke alarms for the home. As per the release, it would be an all cash deal involving USD 3.2 Bn. 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.
Post acquisition, the company will continue its operations under Nest’s CEO Tony Fadell and with its own distinct brand identity.
Founded in 2011 by a team of former Apple employees Tony Fadell and Matt Rogers, Nest’s mission is to reinvent unloved but important devices in the home such as thermostats and smoke alarms. It learns from user’s temperature adjustments, programs itself to keep him comfortable, and guides him to energy savings.
As claimed by the company, the Nest Learning Thermostat has helped save more than 1,000,000,000 kWh of energy to date.
Till date, Nest has raised USD 80 Mn in three rounds of funding from investors such as Kleiner Perkins, Google Ventures, Shasta Ventures, Lightspeed Venture Partners and others.
According to reports, the Smart Thermostats market is expected to reach USD 1.4 Bn by 2020. Thus, the deal completely makes sense for Google, who has been seen making several attempts to gain access to “connected home” type systems in the past. Also, reportedly Apple, who is working on a wearable technology to counter Google glass, was also rumoured to be interested in buying Nest.
It is the second acquisition by Google in the hardware space after it acquires Motorola for USD 12.5 Bn in 2012.
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