Nest Thermostat
Nest, the company which produces smart home appliances like this thermostat, has been purchased Google for $3.2bn.

Co-founded by former Apple designer Tony Fadell, Nest has been bought by Google for $3.2 billion (£1.95bn) - making it the second biggest purchase by Google behind its $12.5bn purchase of Motorola.

Fadell, known as one of the fathers of the iPod, set up Nest Labs in 2010 along with Matt Rogers and launched its first product, the Nest Learning Thermostat in October 2011. Two years later, in October 2013, the company launched its smart smoke and carbon monoxide detector.

In a statement issued by Google on Monday, the company said Nest would continue to run under the leadership of Fadell and with its own distinct brand identity.

Rocket ship

In a blog post, Fadell explained the reasoning behind Nest agreeing to the acquisition:

"Google will help us fully realise our vision of the conscious home and allow us to change the world faster than we ever could if we continued to go it alone. We've had great momentum, but this is a rocket ship."

Google's CEO Larry Page said: "Nest's founders, Tony Fadell and Matt Rogers, have built a tremendous team that we are excited to welcome into the Google family. They're already delivering amazing products you can buy right now--thermostats that save energy and smoke/CO alarms that can help keep your family safe. We are excited to bring great experiences to more homes in more countries and fulfil their dreams."


Google has previously tried to enter the home automation market with Android@Home announced at Google's I/O conference in June 2011, however the programme has yet to produce any concrete products, despite some continued mentions of the programme in Android's mobile operating system.

Nest would have been an attractive proposition for several companies, including Fadell's former employer, but the purchase by Google will give the search giant an important foothold in the burgeoning home automation market.

Google certianly has the resources and expertise at its Mountain View headquarters to expand the reach of Nest products. It could also see Android becoming a ubiquitious platform for smart home appliances.

For Nest customers wondering how the situation will change for them following the Google acquisition, Rogers has posted a Q&A reassuring customers that the situation in relation to warranties and support won't change.