Google said yesterday that it’s buying Nest Labs Inc. for $3.2 billion in cash. Nest is the digital thermostat maker led by Tony Fadell, a former Apple senior vice president, who worked with Apple co-founder Steve Jobs in helping create the iPod and iPhone.

Fadell says in his blog “We have partnerships with some of the largest energy companies in the country to help people save energy and money. We have a huge team of 25,000+ certified professionals who help install Nest in the US and Canada and our company has more than 300 employees spread across three countries.”

The Nest deal heats up the competition with Apple in the connected-device market, and adds to Google’s acquisition of other hardware based companies such as Motorola Mobility and, more recently, Boston Dynamics.

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