Google has acquired Nest, the home startup that makes smart digital thermostat as well as a smoke detector, according to a press release by Google. The amount to be paid for the acquisition is a staggering $3.2 billion, and all in cash.
The company founded by iPod creator Tony Fadell was close to finalizing a deal to raise $150+ million that would have valued it at above $2 billion, re/code reported earlier this month. The startup is often cited as a perfect example in the realm of Internet of Things.
Co-founded Nest along with Matt Rogers, Tony Fadell said that they they are ‘thrilled to join Google’ and ‘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.’
Larry Page, CEO of Google, said “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!”
According to the statement, Nest will continue to operate under the leadership of Tony Fadell and with its own brand identity and the customary closing conditions, including the receipt of regulatory approvals in the US, are expected to finalize in the next few months.
Nest’s press release published shortly after Google’s included a Q&A that assures the existing Nest users that their privacy and the limits of the use of information they have shared with Nest will be respected. It also said the contracts with local retailers in the US, Canada and UK will remain intact.