Google's acquisition of Nest gets US FTC clearance

Google said in January it expected to close the transaction in the next few months

Google's proposed acquisition of Nest Labs has been cleared by U.S. antitrust regulators, possibly paving the way for an early closure of the transaction.

The review into the transaction was granted "early termination," according to an update from the U.S. Federal Trade Commission.

Google said last month it was paying US$3.2 billion in cash to acquire Nest, a maker of smart smoke alarms and thermostats, in what is seen as a bid by the Internet giant to expand into the connected home market.

The company said the transaction was expected to close in the next few months and was subject to customary closing conditions, including the receipt of regulatory approvals in the U.S.

Under the Hart-Scott-Rodino (HSR) Act, parties to certain large mergers and acquisitions must file a pre-merger notification and wait for government review. The FTC has the option to terminate the review before the end of the waiting period and grant early termination, after which the parties are free to close the deal.

A request for early termination is granted only after the FTC and the Antitrust Division of the Department of Justice have completed their review and determined not to take any enforcement action during the waiting period, FTC said on its website.

Google could not be immediately reached for comment.

The proposed acquisition is being closely watched because of potential privacy implications, as there are concerns that Google could use data collected from people's homes to better target its advertising. Shortly after the announcement of the planned acquisition, Nest's co-founder Matt Rogers wrote on the company's blog: "Our privacy policy clearly limits the use of customer information to providing and improving Nest's products and services. We've always taken privacy seriously and this will not change."

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesU.S. Department of JusticeInternet-based applications and servicesU.S. Federal Trade Commissionconsumer electronicsnest labsGoogleinternetMergers and acquisitionsInternet service providers

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?