Google buys Nest Labs for $3.2 billion

Jan. 13, 2014 at 10:12 PM

MOUNTAIN VIEW, Calif., Jan. 13 (UPI) -- U.S. search engine Google Inc. said Monday it will plunk down $3.2 billion in cash for Nest Labs Inc., a maker of Internet-linked thermostats and smoke alarms.

"Nest's founders, Tony Fadell and Matt Rogers, have built a tremendous team that we are excited to welcome into the Google family," Google Chief Executive Officer Larry Page said in a release posted on Google's website. "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, Nest's chief executive, said as part of Google, "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."

Fadell is to stay on as head of Nest, which he and Rogers started in 2010, Google said. Nest's devices are designed to connect to the Internet.

"Google likes to know everything they can about us, so I suppose devices that are monitoring what's going on in our homes is another excellent way for them to gather that information," Danny Sullivan, a Google analyst and a founding editor of Search Engine Land told the New York Times. "The more they're tied into our everyday life, the more they feel they can deliver products we'll like and ads."

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