Samsung Acquires SmartThings
Samsung has jumped on the smart home bandwagon quite some time ago and its newest acquisition SmartThings for which it shelled out almost $200 million promises more from the company.
Currently, the smart home industry is dominated by a few companies which force customers into a certain set of standards as there are not many companies venturing into the market. However, it is changing gradually now with Google acquiring Nest Labs earlier this year and now Samsung acquiring SmartThings.
As part of the deal, SmartThings has agreed to transfer its location to Palo Alto, California in order to work in synchronization with Samsung’s Open Innovation Center. SmartThings will be an independent subsidiary of Samsung henceforth under its founder and CEO Alex Hawkinson.
Hawkinson wrote in a blog post, 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.”
Although Samsung’s rivals have subsidiaries making smart home products, this acquisition gives a competitive edge for Samsung over them as SmartThings has a complete line of smart home products unlike the other players in the market. This, and the possibility of Samsung integrating SmartThings offerings with its smartphones and other electronics could together build a whole set of devices widening the busiess.
Samsung, which has tried to be self sufficient when it comes to smart home products has realized the need to get more assistance from a dedicated subsidiary in order to create a wholesome line of products in this category.
Notably, SmartThings was a kickstarter funded startup which started with a target fund of $250,000 and raised as much as $1.2 million backed by individual backers. It is only a matter of time before we start seeing Samsung Products integrated with smart home tech.