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Google acquires smart thermostat maker Nest for $3.2 billion in cash

Google has confirmed in a press release that it is acquiring Nest Labs, the company behind Nest smart thermostats and fire alarms started by Father of the iPod Tony Fadell. Earlier reports were quickly confirmed along with the transaction price of $3.2 billion in cash in an official announcement posted on the company’s Investor website. In the statement, Google said that Fadell will be staying on board as a Google employee and continuing to run Nest:

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.”

The news follows reports last month that Google was testing smart thermostats of its own similar to Nest and leaked screenshots showing a related app dubbed EnergySense.

Google had already invested in the company through its Google Ventures arm, but the purchase means Nest will officially become a part of Google. In its statement announcing the acquisition, Google noted that Nest will continue “its own distinct brand identity” and that Fadell will continue to run the company.

GOOG is up in after-hours trading after closing the day down.

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Avatar for Jordan Kahn Jordan Kahn

Jordan writes about all things Apple as Senior Editor of 9to5Mac, & contributes to 9to5Google, 9to5Toys, & Electrek.co. He also co-authors 9to5Mac’s weekly Logic Pros series and makes music as one half of Toronto-based Makamachine.