Samsung to Acquire SmartThings for $200m

Samsung to Acquire SmartThings for $200m

According to Techcrunch, Samsung are currently in talks to acquire Home Automation startup, SmartThings for around $200 million. This potentially represents a smart move for both parties – excuse the pun.

Why would Samsung buy SmartThings?

Samsung has so far been left behind as its competitors take big leaps into the world of “internet of things”. As described in Appinion’s Internet of Things Research paper, the market is currently nascent and volatile. This means that any moves by the big tech players, at this stage, could pay off.

SmartThings has the jump on some of its competitors, Apple’s Homekit isn’t yet a reality (outside of testing for a select few) and Google’s Works with Nest home automation solution is only just getting off the ground, with little more than a thermostat on the platform at this stage.

SmartThings on the other hand, already has a range of devices to purchase and out in market. There are a range of sensors, locks, lights and switches already available and in homes around the world.

Check out their amusing promo video

In addition to their dedicated smartphone app, SmartThings has opened up a development kit that lets 3rd parties build hardware that links into the platform or even their own platforms that work with the hardware.

What does SmartThings need from Samsung?

Whilst $200 million is nothing to be sniffed at, SmartThings have already shown that they can compete in the same arena as Apple and Google when it comes to the Internet of Things.

What they lack is the marketing and distribution clout that Samsung can offer. With a good spend, they could position themselves as major players in the market.

On the other hand, they have the option of integrating some of the Samsung hardware into the platform as well as integrating some of the SmartThings hardware range into the existing Samsung product suite.

If this all goes ahead as speculated, its good news for consumers and the industry as more solutions gain wider distribution.