Samsung acquires SmartThings to expand on Internet of Things
With to view to get into the emerging market of Internet of Things (IoT), Samsung has acquired SmartThings. The Washington DC-based company will continue to perform its operations as an independent company.
Though its operations will remain be independent, the acquisition will result reallocation of SmartThings team to Samsung’s Open Innovation Center Group in Palo Alto.
On announcing the about the acquisition through a blog post, SmartThings founder and CEO Alex Hawkinson says, “It has always been our goal to create a totally open smart home platform that brings together third-party developers, device makers, and consumers. We’re thrilled that Samsung fully supports this vision.”
“We will continue to run SmartThings the way we always have: by embracing our community of customers, developers, and device makers and championing the creation of the leading open platform for the smart home. Our growing team will remain fully intact and will relocate to a new headquarters in Palo Alto, CA. In short: SmartThings will remain SmartThings,” he added.
SmartThings, which came into its existence through Kickstarter, is one of the popular companies that are currently available in the emerging market of Internet of Things. In this market, the company provides a connection with home automation devices which include Wi-Fi cameras, connected thermostats set, light switches and locks, connected switches among others.
The deal will enable SmartThings “to support all of the leading smartphone vendors, devices and applications” and will expand its “base of developers and enhance the tools and programs” to bolster its development on the avenue of Internet of Things.
While Samsung and SmartThings have not disclosed any details about the financial terms of the deal, it is speculated to be around $200 million. This amount would enable the South Korean company to get into a new market segment.
In July, Samsung joined Open Interconnect Consortium with partnering other technology industry leaders including Intel, Dell, Broadcom, Atmel Corp and Intel-owned Wind Rivers. The company also stepped up along with ARM, Nest and others to jointly announce Thread wireless networking protocol in the same month.
These two efforts by the Korean giant were in-line towards its focus towards Internet of Things. Similarly, the new acquisition will help the company to start its operations in accordance with its plans.