“Google Inc. agreed to buy Nest Labs Inc. for $3.2 billion in cash, extending the company’s reach into the home,” John Kell reports for The Wall Street Journal.
“Google said Nest will continue to operate under the leadership of founder and Chief Executive Tony Fadell,” Kell reports. “Google expects the deal to close in the next few months.”
Full article here.
“The deal comes just weeks after reports that Nest was raising around $150 million in new venture capital funding to be led by Yuri Milner’s DST Global, which apparently never happened (and possibly was never going to),” Dan Primack reports for Fortune. “Nest was founded in 2010 by Tony Fadell, a former Apple executive known for his design work on the original iPod.”
“Google also was an existing Nest investor, having led the company’s second round of VC funding in early 2011 via its Google Ventures group,” Primack reports. “To date, Nest had raised over $80 million in VC funding from Kleiner Perkins Caufield & Byers, Shasta Ventures, Google Ventures, Lightspeed Venture Partners, Intertrust and Generation Investment Management. Kleiner Perkins is believed to be the company’s largest outside shareholder.”
Read more in the full article here.
Google’s press release, verbatim:
Google to Acquire Nest
MOUNTAIN VIEW, CA – JANUARY 13, 2014 — Google Inc. (NASDAQ: GOOG) announced today that it has entered into an agreement to buy Nest Labs, Inc. for $3.2 billion in cash.
Nest’s mission is to reinvent unloved but important devices in the home such as thermostats and smoke alarms. Since its launch in 2011, the Nest Learning Thermostat has been a consistent best seller–and the recently launched Protect (Smoke + CO Alarm) has had rave reviews.
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!”
Tony Fadell, CEO of Nest, said: “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.”
Nest will continue to operate under the leadership of Tony Fadell and with its own distinct brand identity. 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.
Source: Google Inc.
MacDailyNews Take: Yum, ads for propane, heating oil, etc. right on your thermostat!
[Thanks to MacDailyNews Readers “Fred Mertz,” “macwolf,” “Jeff Daniel,” and “Jax44” for the heads up.]
Related articles:
Tony Fadell introduces Nest Protect smoke and carbon monoxide detector – October 8, 2013
Tony Fadell, Father of the iPod: From Apple to Nest Labs, always a designer – July 24, 2013
Apple Store to sell Tony Fadell’s Nest Learning Thermostat, report claims – May 25, 2012
‘Father of the iPod’ Tony Fadell shows off his new project: Thermostats – October 25, 2011