Nest may still branch into Dublin after $3.2bn sale to Google

Nest Labs Inc, the smart home devices company, was in the process of opening a Dublin office just prior to its sale for $3.2 billion to Google this week.

Nest first held discussions with the IDA late last year about setting up its European office in Dublin to provide sales and support for its internet connected devices like thermostats and smoke alarms. However, a decision looks likely to be stalled for the moment until after its sale conclusion.

Ireland’s foreign direct investment agency is understood to remain hopeful that Nest will locate here under its new owners Google who recently demonstrated its commitment to Dublin by agreeing terms to buy the Grand Mill Quay building in Dublin’s docklands from Nama for €65 million. It is possible this new addition to Google’s Dublin docklands campus could house Nest.

Google's new building was build by bankrupt developer Bernard McNamara and was being managed prior to its sale by receiver Declan Taite of RSM Farrell Grant Sparks.

Tony Fadell, the chief executive of Nest, who previously worked on developing the iPhone and iPad for Apple, attended the Web Summit in October 2013.

He used part of his trip to review potential locations for Nest capable of employing up to 100 people over time in sales and marketing as well as product localisation, support and logistics.

"IDA Ireland has had discussions with Nest as part of our programme to identify early stage fast growing companies," a spokesperson confirmed. He declined to comment further.

Google already employs over 2,500 people in Ireland. It started in 2002 by occupying Gordon House on Barrow Street and has expanded into the area where in 2011 it spent €226 million buying three other buildings.

Google has been trying to expand into smart devices in the home. Nest, which was founded only in 2010, will continue to trade under its own brand selling what it calls “unloved but important devices in the home,” such as internet-connected smoke alarms.

Nest’s devices are in one of the hottest areas being looked at by technology firms the so-called “internet of things”, where devices like lights and doors can communicate with users and each other.

"[Nest are] already delivering amazing products ... thermostats that save energy and smoke or CO2 alarms that can help keep your family safe," Google chief executive Larry Page said in a statement announcing the acquisition.

Google has already moved into the hardware area. It previously had a smart power meter business, which it shut down in 2011, and more recently has been pushing its Google Glass headset to consumers.