Google spends $3.2 billion on Nest, buying into the 'Internet of Things'
In its second largest deal ever, Google is buying Nest Labs for $3.2 billion.
Google moves into smart homes
Nest, a maker of "smart" thermostats and smoke alarms for homes is a leader in the technology movement known as the Internet of Things, adding sensors, computing and communications technology to make everyday objects more useful.
The deal marks another expansion of Google beyond its search advertising business, from robots to self-driving cars, said the Wall Street Journal ,
Google had invested in Nest Labs through its venture-capital arm.
Forrester analyst Frank Gillett told the WSJ Google had "paid handsomely" for Nest to stay ahead of competitors controlling the next generation of smart devices, including appliances and door locks to coordinate the smart home.
Two years ago, Nest’s first product was a thermostat shaped like a hockey puck that programmes itself based on how a user changes the temperature.
It can also detect when there is no one in the home to lower energy use.
Fadell wrote in a blog post that he showed Google co-founder Sergey Brin a video and early model of the thermostat in 2011. "He instantly got what we were doing," Fadell wrote.
Fadell said he sees Nest fitting in Google's vision of a connected world that spans from pocket devices to cars to homes.
Fadell told Forbes last month thermostat was in "almost 1% of U.S. homes," - more than a million houses.
Nest products are sold in Apple stores. Nest said it planned to continue supporting Apple's operating system so its devices can be controlled by an iPhone or iPad.