Google is buying Nest Labs for $3.2 billion.

Nest Labs makes Internet-connected thermostats and smoke detectors.

It was founded by Tony Fadell, the guy most responsible for the iPod after Steve Jobs.

It's incredible to think that he's going to be working for Google considering Apple and Google are bitter enemies.

Fadell founded Nest two years ago. There were reports that he was looking at raising a fresh round of funding. Looks like he decided to sell instead. Nest had raised $230 million in funding to date. Google Ventures was one of its biggest backers.

Nest's beautifully designed thermostat sells for $250. It can be controlled remotely through a smartphone. It also learns your behavior and adjusts the temperature automatically over time.

It just released a smoke detector/carbon monoxide detector a few months ago, which sells for $129. The smoke detector works with the thermostat. It's supposed to be a better smoke detector.

Nest is just getting started, and it makes sense for Google to snap up the most promising company when it comes to home automation.

Here's the release:

MOUNTAIN VIEW, CA – JANUARY 13, 2014 — Google Inc. (NASDAQ: GOOG) announced today that it has entered into an agreement to buy Nest Labs, Inc. for $3.2 billion in cash.

Nest’s mission is to reinvent unloved but important devices in the home such as thermostats and smoke alarms. Since its launch in 2011, the Nest Learning Thermostat has been a consistent best seller--and the recently launched Protect (Smoke + CO Alarm) has had rave reviews.

Larry Page, CEO of Google, said: “Nest’s founders, Tony Fadell and Matt Rogers, have built a tremendous team that we are excited to welcome into the Google family. They’re already delivering amazing products you can buy right now--thermostats that save energy and smoke/CO alarms that can help keep your family safe. We are excited to bring great experiences to more homes in more countries and fulfill their dreams!”

Tony Fadell, CEO of Nest, said: “We’re thrilled to join Google. With their support, Nest will be even better placed to build simple, thoughtful devices that make life easier at home, and that have a positive impact on the world.”

Nest will continue to operate under the leadership of Tony Fadell and with its own distinct brand identity. The transaction is subject to customary closing conditions, including the receipt of regulatory approvals in the US. It is expected to close in the next few months.

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