Google to buy Nest

<p>Google has announced plans to acquire another company.</p>

Google has confirmed it is launching a bid to buy Nest Labs, a company that makes products such as smart thermostats for the home.

The technology giant announced last night (January 13th) that the cash deal would be worth $3.2 billion (£2 billion) and would be completed in the next few days.

In a statement, Google revealed that Nest chief executive Tony Fadell is going to remain in charge of the company despite the acquisition.

"Nest's founders, Tony Fadell and Matt Rogers, have built a tremendous team that we are excited to welcome into the Google family," said Google chief executive Larry Page.

Google has been snapping up lots of companies in recent weeks, with robotics appearing to be a major area the firm is currently focusing on.

The company is already trialling driverless vehicles in the US and its first venture into the new wearable technology sector – Google Glass – is expected to go on sale later in the year.

Google's share price rose by 0.62 per cent in after-hours trading in the US following the news.

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