In a move to step up its game in the so called Internet of Things, Samsung acquired mobile apps maker SmartThings to remotely control in-house devices.
Samsung, the world's largest smartphone-making company, is advancing towards the trending Internet of Things (IoT) sector. With major technology companies like Apple and Google trying to establish a firm position in home automation, Samsung's latest efforts shows it gaining ground in the race. On Thursday, connected home startup SmarThings announced that it has been acquired by the Korean multinational electronics giant, Samsung.
SmartThings is the maker of smartphone-connected devices for use in home. The startup competes with the likes of Nest and Insteon but fights to make a name in the industry. With Samsung's brand name tagged alongside SmartThings, the US-based company will compete against its rivals to gain a prominent hold in the smart home category.
The latest move on the part of Samsung is a way to keep up with the growing demand for smart home devices. The acquisition is not a major bid compared to Google's $2.2 billion acquisition of Nest Labs earlier this year. While the financial terms of the deal were not disclosed, media reports suggest the acquisition hit a $200 million mark.
As part of the deal, SmartThings team will relocate to new headquarters in Palo Alto, California. In the company's official blog, the CEO of SmartThings - Alex Hawkinson - emphasized on the fact that the startup's operations will remain intact.
"We believe that there is an enormous opportunity to leverage Samsung's global scale to help us realize our long-term vision," Hawkinson wrote. "While we will remain operationally independent, joining forces with Samsung will enable us to support all of the leading smartphone vendors, devices, and applications; expand our base of developers and enhance the tools and programs that they rely on; and help many more people around the world easily control and monitor their homes using SmartThings."
Other tech companies that have jumped into the arena include Apple with its HomeKit acquisition in June and Microsoft after it partnered with Insteon. With major tech giants racing towards dominance, soon it will be known as to which company will lead the charts in the developing smart home space.