Google Buys Nest for $3.2 Billion

Company builds smart home devices like thermostats and smoke alarms

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Simon Dawson / Bloomberg / Getty Images

Anthony "Tony" Fadell, chief executive officer of Nest Labs Inc., in London in 2012.

Google has acquired connected device company Nest for $3.2 billion in cash, the company announced in a release Monday. Nest, which builds intelligent home devices such as thermostats and smoke alarms, will continue to operate with its own distinct brand identity under CEO Tony Fadell.

Nest‘s thermostat, which can be set remotely from its owner’s smartphone, has been a best-seller since 2011. Fadell and co-founder Matt Rogers are both Apple alumni: Fadell is known as the “father of the iPod,” and Rogers was one of the first engineers on the iPhone team.

“Google has the business resources, global scale and platform reach to accelerate Nest growth across hardware, software and services for the home globally,” said Fadell.