SmartThings will continue to operate as an independent company within Samsung’s Open Innovation Center.
In the latest sign that the next battleground between the tech giants is the home itself, Samsung just announced the purchase of SmartThings, a connected-home startup that allows users to sync up any smart devices in their homes to a wireless system controlled by a single mobile phone app.
“We believe that there is an enormous opportunity to leverage Samsung’s global scale to help us realize our long-term vision,” said SmartThings CEO and founder Alex Hawkinson in a blog post. “While we will remain operationally independent, joining forces with Samsung will enable us to support all of the leading smartphone vendors, devices, and applications.”
The financial terms of the deal have not yet been disclosed, but TechCrunch reports that it was a $200 million purchase. Per the terms of the deal, SmartThings will continue to operate as an independent company within Samsung’s Open Innovation Center, and will relocate from its Washington, DC headquarters to Palo Alto, CA.
With the acquisition, Samsung becomes the latest tech titan to gain a foothold in the home automation market. Apple recently announced HomeKit, which allows developers to sync up connected gadgets up to iOS, and Google purchased Nest Labs for $3.2 billion back in January.
What makes the SmartThings deal particularly exciting though is Samsung’s commitment to SmartThing’s open platform. Hawkinson told USA Today that SmartThings intends to make its products compatible with Apple’s HomeKit platform, which signals the first sign of cooperation between the tech rivals.
David Eun, who heads Samsung’s Open Innovation Center, echoed these sentiments to the Wall Street Journal.
“We believe open is the way to go.”
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