Google made its second largest acquisition in company history today with the purchase of Nest Labs, makers of smart thermostats and smart smoke alarms, for $3.2 billion in cash. Once the deal closes, it has been reported that Nest will continue to operate as its own distinct brand.
With this acquisition Google not only gets an incredible line of home electronics, but one of the most respected team of designers and engineers in Silicon Valley. The majority of the team is made of up former Apple employees, and Nest co-founder, Tony Fadell, is responsible for the iconic design of Apple’s iPod.
Google continues to be looking to expand into new markets, judging by their current trend of acquiring innovative companies in a variety of industries. Just last month Google acquired Boston Dynamics, makers of military-grade robots, which was the eighth robotics company they purchased over a period of six months.
In addition to a clear interest in robotics, Google is now starting to demonstrate an interest in expanding into home electronics with their acquisition of Nest Labs. At this time it’s unclear what Google intends to do with Nest Labs, but Google CEO Larry Page indicated in a statement that he is “excited to bring great experiences to more homes in more countries and fulfill their dreams.”
Nest Labs is based in Palo Alto, California and employs a team of 280 people as of October. They became successful by developing a sleek, Apple-like thermostat that tracks data and automatically adjusts temperatures. Recently they also added a smart smoke detector to their product lineup. Their $3.2 billion deal with Google is set to close in the coming months.