New York Times:

Nest Labs, a maker of digital thermostats, announced Friday evening that it planned to buy another fast-growing producer of home devices, Dropcam, for $555 million in cash.

The deal is another sign of the industry optimism that the emerging market for Internet-connected smart devices in the home is poised for rapid growth. The most striking sign of such enthusiasm is Nest itself, which Google bought this year for $3.2 billion.

In a brief interview, Matt Rogers, co-founder of Nest, said, “This is a Nest Labs deal, not a Google deal.”

It will be interesting to see how these two companies/devices will fit together going forward.