Samsung to acquire SmartThings for $200 million

After weeks of rumors, Samsung has officially confirmed that it will be buying DC’s SmartThings for a deal of $200 million. After the acquisition, company will be relocated to Palo Alto, Ca. Where it will operate as an independent brand with its team. Its great for the kickstarter company and its fans. SmartThings is focussed on development of a platform that lets things like thermostats, lights, fire alarms and security systems talk to each other and you through smartphone.

Alex Hawkinson (founder and CEO, SmartThings) said that the company appreciates Samsung’s support of their vision which is creating an open smart home platform. It has got great support and funding since its launch. It raised $12.5 million last November and $15.5 million previously reflecting the growing trend of the internet of things. There might be a competition between Samsung and Google, who plans to bring out new android versions for internet of things. Apple is too in the race along with Microsoft.

Hawkinson also said that this is a great opportunity for realizing their long term vision and  increasing Samsung’s scale. Even though the company will continue to operate independently, Samsung will support it in expanding the developer’s base and tools. A new Pew study suggested that by the end of 2025, things will be connected to each other in one or the other way. So this definitely is a good move by Samsung.