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Done Deal: Samsung acquires SmartThings
Last month, reports were suggesting that Samsung was interested in purchasing home automation start-up SmartThings. Now Samsung has announced that it has entered an agreement to complete the deal.
SmartThings was founded back in 2012 and started out as a Kickstarter campaign. Since then, the platform has facilitated development of internet of things (IoT) technologies that allow people to monitor, control, and automate their homes from their mobile devices. The SmartThings open platform currently supports over 1,000 devices, such as locks and lights, and 8,000 apps created by its 5,000 developer strong community.
The deal is expected to boost Samsung’s development in the field of home automation, and should keep the tech giant hot on the heels of other companies working in this field, such a Google, which purchased Nest not too long ago.
“With Samsung behind us, we will be able to attract more device makers and developers to unlock the limitless possibilities of the consumer Internet of Things.” – SmartThings CEO Alex Hawkinson.
SmartThings will become part of the Samsung Open Innovation Center, a division charged with developing software and services for the broader company. Given Samsung’s extensive portfolio of consumer electronics, the company could well make use of SmartThing’s IoT technology in some of its future home appliance products.
As part of the deal, SmartThings will continue to operate independently, under the guidance of founder and CEO Alex Hawkinson. However, the company’s headquarter will move from Washington to Palo Alto, California.
Although neither of the two parties has confirmed the price of the transaction, sources and previous rumors pegged the price at around $200 million. This could end up being quite a small price to pay, if it helps keep Samsung at the forefront of the emerging smart homes market.