Google Inc (NASDAQ:GOOGL) and Nest Labs Alliance

Google Inc (NASDAQ:GOOGL) signed an agreement to get full acquisition of Nest Labs back in January this year; the acquisition is worth $3.2 billion. It appears that Google Inc (NASDAQ:GOOGL) has been very attentive to Nest; CEO and founder of Nest Labs Tony Fadell expressed his excitement about the company’s alliance with the world’s biggest internet company. It is not an easy task to harmonize 2,000 to 3,000 companies and make them work together to deal with Google services and home products at the same time. Despite all the difficulties of this acquisition one part of the deal is working well – the financial aspect of the tech giant’s latest branch, which is being supported well by Google Inc (NASDAQ:GOOGL).

Nest Lab specializes in reinventing home appliances such as smoke alarms and thermostats. Google Inc (NASDAQ:GOOGL) had some stake in the company even before the acquisition offer was made; the tech giant had an ownership interest of 12% in Nest Labs. Google Inc (NASDAQ:GOOGL) believes that this alliance will enable the company to improve its products and allow Nest Labs to continue its innovative product building. It seems this acquisition will be an important step towards “smart homes”.

According to Fadell, Google Inc (NASDAQ:GOOGL)’s financial support has been invaluable; it has allowed him to focus on his business instead of investing his energies in raising money for the company. Fadell says he can now work towards building products and his team instead of worrying about financial issues. Fadell also says that he is working hard in trying to find talent within Google and make them work together with Nest to reach even greater heights.

This acquisition deal worth $3.2 billion is not only beneficial to Nest, but it also lets Google Inc (NASDAQ:GOOGL) develop its very own ecosystem, which could help the company create a new line of home appliances driven by innovative softwares. The market for such products is somewhat still untapped; however this area seems promising and is likely to offer tremendous growth in the future.

When it comes to software driven products it is natural to worry about security issues related to hackers; Google Inc (NASDAQ:GOOGL) has given assurance that the company is taking all the measures to prevent unwanted hacks and security breaches.

Tony Fadell further said that it is important to have all the pieces in places in order to get the best results. He thinks that he is lucky because he has all the teams at his disposal and this is where Google Inc (NASDAQ:GOOGL) gives them another valuable advantage. He says that Google’s security teams are doing their best to attend to all the possible areas that could lead to security breaches. Fadell said that so far the company hasn’t had any unpleasant security issues such as data theft.

Nothing can be said for sure that what this alliance will produce; however knowing Google Inc (NASDAQ:GOOGL) the market must prepare itself for something out of the ordinary.

Google Inc (NASDAQ:GOOGL) stock kicked off the morning trading session at $567.47 and took a dip by 0.82% to land at $566.11 at 11:13 am EDT.