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Google Lays Out $3.2 Billion for a Nest

Nest Thermostat
Nest ThermostatCourtesy Nest

Let it be said that when Google wants something, it doesn’t mess around. On Monday, the search-and-advertising company signed off on a deal to buy Nest Labs for $3.2 billion in cash. It’s an extraordinary sum to pay to become the world leader in high-tech smoke alarms and thermostats.

The companies announced the deal in a press release, releasing little information beyond the acquisition price. Tony Fadell, Nest’s co-founder and chief executive officer, will continue to run Nest under its own brand inside Google. Fadell previously worked at Apple, where he helped bring the iPod and iPhone into existence and served as one of Steve Jobs’s top lieutenants. Now, he’s ended up at Apple’s arch-nemesis.