Nest Labs Acquisition of MyEnergy Makes Sense
As we wrote in the last post to this blog, merging tech businesses make sense when an acquirer looks to enter new markets. Nest Labs acquired MyEnergy in early May, 2013. This acquisition meets our criteria.
Back in December, 2012, we published a series of posts on the Smart Grid here in the United States on our Industrial-Strength-Ethernet blog. In April of this year we wrote of the Nest Labs Thermostat technology: ” . . . what we . . . find exciting about the [Nest Labs residential thermostat] is its apparent compatibility with most smart meter systems and, thereby, with the smart grid.”
But the thermostat did not have the hooks to the grid. On May 7, 2013 we interviewed Ms. Kate Brinks of Nest Labs. Ms. Brinks informed us ” [Nest Labs] is a consumer product company. We have things like the Zigbee chip built in. . . Just being forward thinking, we knew a lot of the Smart Grid uses Zigbee, and so we put that chip in there just to be ready for it, if the time came when our customers would want to do that [presumably, to connect a smart residential temperature control system, represented by the Nest Labs thermostat to the Smart Grid]”. Transparent bi-directional data communications from residences, back through the Nest Labs thermostat, and then up to an energy provider through the Smart Grid was not actually possible.
Until Nest Labs acquired the technology along with the other assets of MyEnergy. Merging the two technologies together makes Nest Labs technologies into a unique set of tools capable of bridging the divide between the Smart Grid and energy consumers otherwise created by the dumb or smart meter positioned between businesses, residences, and the energy distribution plant. We aren’t aware of another comparable technology.
So merging MyEnergy and Nest Labs into one business is a great example of a sensible technology acquisition, promising business expansion and very low internal levels of friction between Line of Business (LoB) units, if any at all.
If you’d like to read more of our chat with Ms. Brinks, please contact us.
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