In a bold move to bet on what is called the "internet of things," search giant Google has acquired startup Nest Labs for a price tag of $3.2 billion, the Financial Times reported. The four-year old startup was established by former Apple employees Tony Fadell and Matt Rogers. It makes the Learning Thermostat which monitors home temperatures and conserves energy by turning it down when no one is home. Nest Labs also makes the Protect smoke alarm that warns homeowners of potential fires.
This is the second biggest acquisition for Google, just coming after its 2011 acquisition of Motorola which cost $12.5 billion and just a bit more expensive than the company's purchase of display advertising network DoubleClick which it acquired in 2007 for $3.1 billion, the report said.
In a statement, Google Chief Executive Officer Larry Page said they are looking forward to giving more homes in more countries great experiences and fulfill their dreams. This is Page's most recent move into hardware and connected devices, away from the search company's core online advertising operations. Google is also dabbling with self-driving cars, wearable technology and robotics, the report said.
Nest assured that the deal will not impinge on privacy, as concerns about the combination of data taken from their homes and other information that Google obtained from their browsing sessions surfaced. In the statement, Nest said that their privacy policy is clearly limited to using customer information to giving and improving the company's products and services, the report said.
Because they are sleek and intuitive, the products of Nest have become a poster child for the "internet of things" which refers to the concept that online connectivity can improve domestic, industrial and other devices, FT reported.
Nest Co-Founder Fadell wrote in a blog post about the acquisition, "Google will help us fully realise 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."
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