Google recently announced that it will acquire Nest Labs, a company best known for its innovations in smarthome technology, for $3.2 billion in cash. According to the related press release, the transaction is still subject to the usual closing conditions, but is expected to close within the next few months.
Nest is a home automation startup founded by former Apple engineers. Their current products include smart thermostat (Nest Thermostat) and smoke alarm (Nest Protect) systems that even work together to make their users’ homes safer.
Nest CEO Tony Fadell 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.” In a blog post on the Nest website, Fadell says 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.”
Google has stated that Nest will still have its own brand identity, and will continue to operate under Fadell’s leadership. In another Nest blog post, Matt Rogers, the company’s founder and VP of Engineering, reassures their current customers that the company looks forward to continuing their partnership, and will “remain devoted to [their customers] above all else.”
How will Nest and Google work together? It’s easy to see how Nest technology will improve Google’s presence in the home, but how will Nest integrate into Google’s product lineup? Rogers states that they have “nothing to share today,” but it will be interesting to see what the two companies can do. Nest’s products are focused on user behavior and experience, which are also things that Google focuses on with their SEO guidelines and algorithm updates. With this aligned focus, Google’s support and funding, and Nest’s technology, we can probably expect great things from this acquisition.
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