Google To Buy Nest Labs For $3.2 Bln Cash

(RTTNews) - Internet giant Google Inc. (GOOG) said Monday that it has agreed to buy home automation start-up Nest Labs, Inc. for $3.2 billion in cash.

The deal is expected to close in the next few months.

Headquartered in Palo Alto, California, Nest Labs, was co-founded by former Apple, Inc. (AAPL) engineers Tony Fadell and Matt Rogers in 2010. The company designs and manufactures sensor-driven, Wi-Fi-enabled, self-learning, programmable thermostats and smoke detectors.

Commenting on the deal, Google 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 fulfill their dreams!"

Tony Fadell, CEO of Nest, said, "We're thrilled to join Google. With their support, Nest will be even better placed to build simple, thoughtful devices that make life easier at home, and that have a positive impact on the world."

Nest will continue to operate under the leadership of Tony Fadell and with its own distinct brand identity, Google said in a statement.

Google shares are currently gaining 0.49% in after hours trading after closing the day's regular trading session at $1,122.98, down $7.20.