What kind of business could you buy for $3.2bn – or about £2bn? Well, in the UK you could pick up the construction giant Balfour Beatty, which employs more than 10,000 people, or the only remaining High Street electronics chain Dixons, with a workforce of more than 30,000. Or, if you are Google, that is what you can pay for a tiny connected home business employing just 300 people.
Google has just purchased Nest Labs, the maker of the Nest Learning Thermostat and Protect smoke detector, for $3.2 billion in cash. According to a Google press release, Nest will continue to operate independently, co-founder and CEO Tony Fadell tells us; co-founder Matt Rogers will also make the move to Google. While the transaction is subject to the usual regulatory review, Google says it expects the sale to close within the next few months. Google Ventures had already invested tens of millions of dollars in Nest, so the company has been on Mountain View’s radar for some time now.
Read the Google press release here.