Google (NASDAQ: GOOG) has an estimated amount of $55 billion to spend, since September the company made 12 acquisitions. Google has acquired companies such as Flutter, a gesture recognition technology company for $40 million, and FlexyCore, a droid booster application for Android for $23 million. Google announced on Monday that they have acquired Nest Lab, a smart appliance maker for $3.2 billion.
Never heard of Nest Lab?
Nest Lab was founded by Tony Fadell and Matt Rogers, both former Apple (NASDAQ: AAPL) engineers prior to creating the company in 2010. Fadell was the Senior Vice President of the iPod division at Apple, and was known as one of the “father of the iPod”. Rogers worked on the original iPhone and iPod software development. The company was founded with a team of extremely credible backgrounds and currently has more than 130 employees..
Nest Lab creates smart appliances, with its first product being the Nest Learning Thermostat. The product is electronic, and programmable Wi-Fi enable device which is able optimize temperature in order to conserve electricity. Since the product is Wi-Fi enabled, the company is able to push software updates through the web. The second and latest product from Nest Lab is the Nest Protect, a Wi-Fi enable smoke detector using the same electronic and programmable technology.
Good move from Google?
Google spent nearly 5% of its $55 billion to acquire Nest Labs, and while the current product sales numbers do not justify a $3.2 billion price, the future of Nest Labs may be worth the hefty price. Nest Labs is creating innovative products, and may possibly be the future of every household and its foundations. Nest Labs is a small growing company with a bright future With Google’s name behind Nest Lab, sales of product are likely to thrive.