Google has announced that it has bought Nest Labs for $3.2 billion in cash. Nest makes iPhone-controlled smart thermostat and smoke and carbon monoxide detector devices for connected homes. Nest was founded by Tony Fadell who used to work at Apple, he played a major role in iPod music player project.

The iPod maker Tony Fadell will now work with Google. Nest will continue to operate independently of Google and won’t share customer data with them. Nest’s thermostats have been one of the most popular connected devices bought at Apple Stores.

Talking about Nest Vision, CEO Tony Fadell said “From the beginning, our vision was to create a conscious home. A home that is more thoughtful, intuitive – and nice to look at. No one had cracked the code and we were confident we could do it with the right product, the right team, and focus”

Google confirming the deal in post on its investors 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!”
– Larry Page , Google CEO

Google also said that nest will work independently, “Nest will continue to operate under the leadership of Tony Fadell and with its own distinct brand identity. The transaction is subject to customary closing conditions, including the receipt of regulatory approvals in the US. It is expected to close in the next few months.”

In another blog post Nest said said user privacy will not be hampered, as they will not share user information with Google.

So what does this deal means to Google, they will certainly enhance the product range make them work with android device, as until now Nest’s first priority was Apple device connectivity but now things will change and these product will support android devices. Now google can enter smart home market with linking them with android devices. This is a good deal for Google as Google will integrate these product with Google glass and android powered Nexus devices.