Posted By Simon Montford on Oct 25, 2014
Boulder-based Home Automation Hub Revolv, a graduate of the TechStars accelerator programme, has been acqui-hired by Nest. An "acqui-hire" is when a company buys a startup to obtain the startup's team, rather than to own its products or technology, which it often shuts down post purchase.
In this case, it looks like Nest is only after the company's smart-home automation experts and its developer platform. Perhaps one of the reasons why Nest will shutter Revolv is because at $300, the home automation hub didn't sell in large numbers.
Although home automation systems are not flying off the shelves yet, it is still early days. Connected devices in the home will be a multi-billion dollar sector as the Internet of Things becomes a big part of our every-day lives. This is why a growing number of major players are starting to snap up high-potential fledgling startups. In addition to Google's acquisition of Nest, Samsung recently purchased one of Revolv's closest competitors, SmartThings, for $200 million. Nest was itself acquired by Google for $3.2 billion a few months ago, so expect the feeding frenzy to continue!
Related articles: "Rise of the hardware startup accelerator", other articles relating to the "Smart Home".
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