Google to acquire Nest for $3.2 billion

Google has announced a $3.2 billion (1.94 billion) cash deal to buy smart thermostat and fire alarm producer Nest Labs.

This acquisition is second only in value to the company's purchase of Motorola in 2012, which cost $12.5 billion.

The deal further cement's Google's move beyond its search engine and online services roots and into the hardware world. The organisation also recently purchased military grade robotics firm Boston Dynamics, which was the sixth robotics acquisition it has made since December 2013.

Nest was founded by Tony Fadell, who led the team that created the first 18 generations of the iPod and the first three generations of the iPhone, and Matt Rogers, who created the iPod's software.

In a blog post, Fadell said: "This is a momentous day for me, for Matt and for all of the Nest family.

"Google will help us fully realise our vision of the conscious home and allow us to change the world faster than we ever could if we continued to go it alone. We've had great momentum, but this is a rocket ship."

Nest will continue to operate as its own brand following the acquisition and in his own blog, Rogers said Nest will continue to offer support for iOS as well as Android, and that existing Nest warranties will not be affected by the change of ownership.

In a statement, Google CEO Larry Page added: "Nest's founders...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...[and] we are excited to bring great experiences to more homes in more countries and fulfil their dreams!"