Google (GOOG) is moving into the home appliance business. The Internet search giant-turned technology developer announced on Monday that it will acquire Nest Labs, best known for creating a line of smart thermostats.
Nest Labs is headed by former Apple (AAPL) executive Tony Fadell, who was behind the creation of the iPod. Google will pay $3.2 billion to buy Nest, its largest purchase since spending $12.5 billion to buy Motorola in 2012. The acquisition gives Google a beach head in home appliances, which are increasingly gaining WiFi connectivity — a move toward the so-called “Internet of Everything,” in which all devices are ultimately networked and subject to remote control, Reuters notes.
Roughly a third of Nest’s team of 300 are former Apple employees. The Nest smart thermostat has been sold through Apple’s online store, as well as retailers like Best Buy (
BBY). Fadell told Reuters that privacy issues had been a major talking point during his negotiations with Google about the merger. Nest will remain an independent brand after the acquisition.
GOOG stock climbed almost 1% in Tuesday morning trading. GOOG stock rose above $1,000 a share in October. GOOG stock has continued to climb since then. GOOG stock rose above $1,100 a share in December. GOOG stock is currently trading at more than $1,135 a share.
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