Samsung Electronics Co. Ltd. (LON:BC94) (KRX:0059935) recently acquired SmartThings, a tech start-up company that creates software for smarter homes. This acquisition should help the South Korean tech giant take on the next wave of technology.
Samsung enters new territory
As mobile technology becomes more mainstream over time, tech companies are already looking for new ways to connect people. A current trend involves appliances embedded with technology like cameras and sensors utilizing a wireless internet connection which controls the appliance or collects data.
Samsung elaborated on the technology in a press release. It was explained SmartThings supports the open and growing developer ecosystem. The same developers are creating new types of connected devices as well as fresh apps to modify everyday objects.
The deal’s terms were not mentioned, however one source reports the deal cost nearly $200 million. SmartThings makes a mobile app which controls a wide range of devices. It also offers a software platform for device makers and outside developers. Samsung already has a significant role in this developing market thanks to Tizen mobile operating system which enables users to control appliances and utilities with their smartphones.
Samsung looks for new ways to innovate
This acquisition should give Samsung more clout in the smart technology industry and take it where most tech companies have never gone before. Last month, the company started to team up with competitor companies like Nest Labs to create more internet-accessible products. Samsung is one of the leading technology companies alongside Apple Inc. (NASDAQ:AAPL), and it is important for the company to find a way to expand with something different. Home technologies could be just the way to do that.
ARM Holdings plc (ADR) (NASDAQ:ARMH), Freescale Semiconductor Ltd (NYSE:FSL), Samsung, and other companies strive to develop technologies that connect over 250 devices on a low-power network with cloud-based internet access via a non-profit group.