Google to Acquire Connected-Home Startup Nest for $3.2 Billion
In addition to the Nest smart thermostat, the company sells the Nest Protect, a smart smoke alarm.
Nest was founded in 2010 and launched the following year. The company had raised a total of $230 million in funding, with Google Ventures leading Nest's Series B round in August 2011 as well as its Series C in 2012.
"Nest's product line obviously caught the attention of Google and I'm betting that there's a lot of cool stuff we could do together, but nothing to share today," Nest co-founder Matt Rogers said on the Nest blog.
Nest says it has more than 300 employees in three countrie,s as well as a network of more than 25,000 certified professionals who help install Nest in the U.S. and Canada.
"This decision wasn't made on a whim," Nest co-founder and chief executive Tony Fadell wrote in a separate blog post. "I know that joining Google will be an easy transition because we're partnering with a company that gets what we do and who we are at Nest - and wants us to stay that way."
Nest will continue to operate under Fadell and with its own distinct brand identity, Google said. The deal is expected to close in the next few months but, of course, is subject to customary closing conditions.
Entrepreneur Editors' Picks
How an Encounter With the 'Armpit of Destiny' Helped the Founder of Grubhub Take His Business From His Apartment to a $2 Billion IPO
You Can Train Your Brain to React to Stressful Situations Better. Here's the 3-Step Process.
A Disastrous Valentine's Day Inspired This Founder to Launch Her Own Floral Brand. It Became a Celebrity Magnet With Retail Revenue Up 450% Since 2019.
What Is Your Dream Job? Ask Yourself These 4 Questions to Find Out.
This Is the Crazy Process This Juice Franchise Went Through to Get USDA-Certified Organic. But It Sure Has Paid Off.
No One Would Rent Me a Café in Trendy NYC Neighborhoods, So I Tried Something Risky. Now I Have 3 Coffee Shops.