Published on January 14th, 2014 | by Joshua S Hill2
Google Acquires Nest For $3.2 Billion
It comes as no great surprise that Google announced Monday it had acquired Nest Labs, the maker of the innovative Nest Learning Thermostat, paying out $3.2 billion in cash to fold the company into its great big warm and loving arms. Google loves companies and products like Nest, and Nest looks like a perfect fit.
Launched in 2011, Nest has upgraded and perfected the Nest Learning Thermostat — introducing Rush Hour Rewards and Seasonal Savings in July of last year to further utilise the functions of the thermostat. Nest also teamed up with Sunrun late last year, and then introduced its new product Protect — a smoke and CO alarm.
According to a report released at the beginning of 2014, Nest was set to raise at least $150 million on a $2 billion valuation, cited people familiar with the talks. Public love, good business, and products making money hand over fist, the final valuation doesn’t strike me as all that absurd.
Larry Page, CEO of Google, agrees:
“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!”
Nest’s founder and CEO, Tony Fadell, took to the Nest blog to describe his feelings on the “momentous” deal, explaining that “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.”
Fadell was also quoted in the Google press release: “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.”
The press release went on to say that Nest would continue as its own distinct brand, under Fadell’s leadership — a smart move given Google’s already behemoth-size structure, and its relative-inexperience in something as specific as smart-home consumer technology.
Matt Rogers, Nest’s founder and VP of Engineering, also took to the Nest blog to explain just what the acquisition means for the customers. There isn’t much that will change, and any of the Google vs. iOS/Apple fears people have expressed were immediately squashed.