Google acquired Nest Labs (smarthome devices)
Companies in Relationship
, Nest Labs
Initial Announcement Date:
Consideration: $3.2 billion in cash (Source: Google press release); consideration was stated later as $2.6 billion in 10-K); $2.3 billion allocated to goodwill (Google 10-K)
Google is acquiring Nest Labs for $3.2 billion in cash. Nest makes smart thermostats and smoke alarms for homes. If approved by regulators, the acquisition will be Google's second largest, second only to the Motorola Mobility deal. Nest has been a leader in the Internet of Things, which involves enabling everyday objects with communications technology to become more efficient and convenient.
Google Ventures had previously invested in Nest, leading two financing rounds in 2011 and 2012.
Google asserts that it will not interfere with Nest's products. The company will continue to operate under its own brand, sell its products, and provide support to existing and future customers. It remains unclear if Nest will share customer data with Google.
The Nest deal reflects yet another Google diversification effort beyond its core advertising business. (Google has also been moving into areas such as self-driving cars and robotics.)
In acquiring Nest, Google also acqui-hires CEO Tony Fadell, a former Apple executive, who was instrumental in developing the iPod. Fadell will continue to run Nest and will report to Larry Page. Fadell views the deal with Google as a growth "accelerant" for his company.
July 2014 -- Nest announces a working group with Samsung, ARM Holdings, Freescale, Silicon Labs, Big Ass Fans, and Yale locks to establish Thread as the industry standard by connecting home devices on a network.
April 2015 -- Next partners with SolarCity to provide 10,000 California solar customers with Nest Learning Thermostats. The objective is to determine how smart thermostats coupled with solar energy can benefit homeowners and the grid. SolarCity is the first pure-play solar energy company to work with Nest in its Energy Partner Program that began in 2013 with the goal of signing up utilities and alternative energy providers to help customers lower demand and receive "rush hour rewards."
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