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Google announced on Monday that it had reached an agreement to acquire the smart home device maker Nest for a reported US $3.2 billion in cash.
This is the second largest aquisition in terms of value for Google, which is behind the U.S. $12.5 billion it paid to buy smartphone maker Motorola. Some commentators believe the acquisition will set off the worldwide pursuit of smart home device makers as everyone rushes to keep up with Google.
Nest was founded in 2011 by former Apple engineers Tony Fadell and Matt Rogers. Fadell is widely considered the "father of the original iPod." All Nest products have the capability of connecting with one another, to adjust themselves according to the environment and user and can be accessed via the owner's mobile device.
Nest is best known for its beautifully designed smart thermostat which has the ability to learn about the home environment with input from the user. Last year Nest introduced Protect, a Wi-Fi enabled smoke detection and carbon monoxide monitoring device that has the ability to be silenced when no emergency is present with a wave of the hand.
According to a blog post by Google CEO Larry Page, Nest will retain its separate identity and brand while continuing under the leadership of Fadell and Rogers. The final acquisition however will require approval from U.S. authorities. Nonetheless, no obstacles for approval are expected, and Google is looking to complete the deal within the next few months.
Google's investment arm, Google Ventures, was an early investor in Nest. It provided funds for both its Series B and Series C rounds of investments. The deal has raised concerns among some about privacy and how much access Google will have to your personal information and your home energy use; but Nest's Rogers said that they have and always will take privacy issues seriously. The company will continue to only use information that is needed to implement and improve Nest's products and services.
