From left to right: Nest co-founder Matt Rogers, Google CEO Larry Page, Nest co-founder and CEO Tony Fadell

Tony Fadell's company Nest makes innovative thermostats and smoke detectors. Nest products are often compared to Apple devices for their impeccable design.

Google Inc. on Monday, January 13, announced the purchase of innovative home technology manufacturer Nest Labs. The transaction amount will be $3.2 billion. Sellers will receive the money in cash, Google said in a press release.

While the parties are awaiting regulatory approval. The deal will be closed in the next few months.

The amount that Google agreed to pay for Nest turned out to be an order of magnitude higher than unofficial market estimates of the company's business. In early January, the Recode portal, citing informed sources, reported that the startup was preparing another round of investments worth $150-200 million and, based on its results, hoped to be valued at $2-3 billion. Among the potential investors was the DST Global fund of the leader in the rating of Russian venture capitalists Yuri Milner .

Nest was founded in Palo Alto, California in 2010 by former Apple engineers Tony Fadell and Matt Rogers.

In the 2000s, Fadell became widely known in the technology industry as the creator of a breakthrough product for the Apple corporation - the iPod - and built a successful career at Apple in seven years, reaching the position of senior vice president at the time of his resignation in 2008. Rogers also worked on the iPod project as a software engineer.

The Nest products with which the company entered the market received flattering evaluations from experts for their impeccable design - this time it was about innovative home devices, thermostats and smoke detectors.

Since 2011, the Nest thermostat, which in addition to its design and good technical features, has remained a bestseller in its category on the American market. The $249 device not only looks beautiful, but also has unique energy-saving features. In September, Nest reported monthly thermostat sales of 40,000 units.

The smoke and carbon dioxide sensor designed by Fadell and Rogers, which went on sale shortly before the Google deal for $129 apiece, also earned rave reviews. Like the thermostat, the filter could be controlled remotely via mobile devices and using the touch sensors that the new product is equipped with.

Nest executives also announced the ability to integrate both of their devices as a platform for creating a single “smart” ecosystem within the same home in the future. For example, when a smoke sensor detects smoke in a house, the gas could be automatically turned off, and in the absence of such a threat, the sensor could work as a motion sensor and transmit additional information to the thermostat about a person’s navigation inside the house, so that a “related” device would more correctly adjust the air temperature in the room.

The design of Nest devices was perceived by many experts and consumers as a legacy of Apple’s best practices during the second coming of Steve Jobs to the corporation. Fadell constantly emphasizes the importance of the “emotional” connection between the thermostat and smoke detector and the consumer. Given this indirect relationship with Google's main rival for global market dominance, the deal came as a surprise to Silicon Valley, although the search giant's venture arm had previously invested in Nest.

“Google will help us fully realize our vision of the smart home and enable us to change the world faster than we could ever imagine if we remained independent. We had excellent dynamics, but now we are able to develop at truly cosmic speed,” Fadell, who holds the post of CEO at the company, commented on the deal on the Nest blog.

According to him, within Google Nest will remain an independent division and will not rebrand; the unique team of the ambitious startup will also remain after the absorption by the search giant.

Fadell noted that Google has not lost interest in Nest developments since 2011, when it showed a demo version of the thermostat to the search giant's co-founder Sergey Brin before the official launch.

Rumors that Google is working on its own thermostat have appeared in the press more than once. As a result, the corporation decided not to take risks and absorb one of the most promising players in the segment. In the coming years, experts expect explosive growth in the market for smart home devices, and Nest's developments could be a decisive factor in Google's victory over its competitors. The same smoke detectors today must be installed in all homes in all 50 US states. In 2012, IBISWorld analysts estimated the size of the American market for this type of device at $1.4 billion.

“Tony and Matt have built an incredible team, and we are thrilled to welcome them into the Google family,” co-founder and CEO Larry Page said in a press release. “They already make amazing products that you can buy right now, like thermostats that save energy and smoke filters that can keep your family safe. We look forward to making these devices available to even more homes around the world, so your dreams can come true.”

Google bought iPod creator's startup for $3.2 billion