LG buys Homey in a move very similar to Samsung’s SmartThings

LG has acquired an 80 percent stake in Athom, a Dutch company best known for its Homey smart home platform. The deal, which LG said would see it acquire the remaining 20 percent of Athom over the next three years, was struck to expand LG’s smart home ecosystem and should allow it to better compete with rival Samsung’s SmartThings platform.

LG plans to integrate Athom’s existing Homey connectivity — which powers smart devices from Sonos, Ikea, Aqara, Philips Hue, and more — with its devices via its ThinQ smart home platform. Homey says its users will soon be able to control LG’s ThinQ-enabled devices through the platform. Homey has grown a sizable user base since it was founded in 2014, and its flagship Homey Pro smart home hub can connect to more than 50,000 devices via Wi-Fi, Bluetooth, Z-Wave, Matter, and Thread.

The deal will allow LG to include third-party devices and services in the ThinQ ecosystem for the first time. LG executive vice president Jung Ki-hyun refers to the Athom acquisition as “a cornerstone for our AI home business.” LG announced plans at CES in January to bring so-called “Affectionate Intelligence” to its ThinQ smart home platform — which could now involve connecting Homey to appliances, sensors and lighting.

LG says Athom will continue to operate as an independent company following the acquisition, with its current branding and operations intact. It’s a similar move to Samsung, which acquired SmartThings for $200 million in 2014, after which Samsung rolled out multi-connectivity SmartThings support to soundbars, TVs, smart refrigerators, monitors, and other devices.

“Homey will continue to operate as before, and Athom will remain involved in the development of Homey Cloud and Homey Pro and will continue to work on an ever-expanding portfolio of new products,” Homey said in its statement announcing the acquisition. “Both founders, Emile Nijssen and Stefan Witkamp, ​​will remain directors of Athom and will continue to pursue their vision and create a better smart home for everyone.”

The value of the transaction, however, has not been officially disclosed. Korean Economic Daily says it’s estimated to be around 85 billion won ($61 million). LG also didn’t explain how Homey’s connectivity and integrations will be embedded into its products, but notes that the deal will allow it to “gain deeper insights into customers’ lifestyles and usage patterns” — which may not fit with Homey’s “privacy first” ethos.