By Dow Jones Business News,
January 13, 2014, 05:07:00 PM EDT
By John Kell
Google Inc. agreed to buy Nest Labs Inc. for $3.2 billion in cash, extending the Internet-search giant's reach into
Nest Labs makes household devices like thermostats and smoke alarms that can be controlled by an app. The company
was founded in 2011 by Tony Fadell, who previously led the Apple Inc. team that created the first handful of iPods. He
also was part of the executive team involved in the development of the iPhone.
Nest Labs' executive team includes at least three other former Apple employees, as well as a vice president of
technology that previously worked at Google.
Nest Labs, based in Palo Alto, Calif., is backed by investors including Google Ventures, Kleiner Perkins Caufield &
Byers, Lightspeed Venture Partners and Shasta Ventures.
Google said Nest Labs will continue to operate under the leadership of Mr. Fadell, who is chief executive. In a
blog post, Nest Labs said that despite the deal with Google, the company plans to continue to allow customers to control
their household devices through Apple products.
The Nest Labs deal will barely dent Google's massive cash holdings. As of Sept. 30, the company had nearly $57
billion in cash, cash equivalents and marketable securities.
The transaction is subject to customary closing conditions, including regulatory approvals. Google expects the deal
to close in the next few months.
Write to John Kell at email@example.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
Copyright (c) 2014 Dow Jones & Company, Inc.