Google is moving into your home. On Monday, the Internet company said it was acquiring Nest, a maker of smart smoke alarms and thermostats, in a move that gives Google a strong foothold in a hot new market known as the "connected home."
The idea behind the connected home is to connect heating systems, lighting systems and appliances such as refrigerators to the Internet so that they can be made more efficient and controlled from afar. In the process, companies can collect more data about people's habits, something Google loves.
Nest's price tag shows Google means business: $3.2 billion cash. If the deal goes through—which Google expects in the next few months—it will be one of its largest acquisitions since the Internet giant bought YouTube in 2006 for $1.6 billion. Google has been interested in Nest since at least 2011, when it led a round of funding in the company, followed by another in 2012.
All about Nest
Nest makes a thermostat and a smoke-and-carbon-monoxide monitor that can be controlled via Wi-Fi from a smartphone, and that can re-program themselves based on people's behavior. The privately held company was founded in 2010 and has more than 300 employees spread across three countries. A good number of its workers, including CEO Tony Fadell, are former Apple employees.
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