This image created by LG Electronics shows how smart platform LG ThinQ can be integrated with Athom's Homey to create an AI-powered smart home system.
South Korean home appliance giant LG Electronics said on Wednesday it has acquired Netherlands-based home automation company Atom BV to further promote its smart home ecosystem.
LG recently announced that it had signed an agreement to acquire 80% of Atom's shares, on the condition that it purchase the remaining 20% within the next three years.
LG did not disclose the value of the deal, but sources estimated it to be around 85 billion won ($61 million).
Following the acquisition, Athom will continue to operate as an independent business under its current brand and will maximize its growth potential and unique strengths while fostering synergies with LG in business, R&D capabilities and platform utilization.
Athom's flagship product, the Homey Pro, supports a variety of connectivity methods, including Wi-Fi, Bluetooth, Z-Wave, Matter, and Thread (screenshot from the company's website)
With this stake, LG plans to integrate Athom's extensive connectivity, which links thousands of home appliances, sensors and lighting devices, into its generative AI-enabled LG ThinQ platform.
According to LG, the integration is aimed at creating an AI home, where customers will be able to leverage generative AI to manage their home appliances and Internet of Things (IoT) devices to create a personalized environment tailored to their preferences.
“By integrating Atom's capabilities with LG's intelligent technology, LG aims to lead the era of AI-driven home innovation,” the South Korean company said in a statement.
Known for its family atmosphere
Enschede-based Athom is known for Homey, a mobile and web application interface that enables third-party developers to add support for their products via the Homey smart home hub.
William Cho, CEO of LG Electronics
Like other smart home hubs, Homey acts as a central point for configuring, controlling, and monitoring the components in your smart home.
Homey was launched in 2014 and is sold primarily in Europe, where it has garnered a loyal customer base of hundreds of thousands. Homey devices are now also sold in Australia, Singapore, the United States and Canada.
Athom's flagship product, the Homey Pro, is versatile and open, as it can connect to over 50,000 devices and supports a variety of connection methods, including Wi-Fi, Bluetooth, Z-Wave, Matter and Thread.
The Homey App Store, run by a Dutch company, offers around 1,000 apps for connecting and controlling home devices from brands such as Philips Hue and IKEA.
Combining LG THINQ and ATHOM's open API
LG envisions creating the concept of “Intelligence Space” by integrating the smart home technology of its LG ThinQ platform with Athom's open application programming interfaces (APIs), which it said will enable LG to incorporate third-party devices and services into its ecosystem.
LG Electronics' webOS Zone at CES 2024 (Courtesy of LG Electronics)
“The acquisition of Atom is a cornerstone of our AI Home business,” said Chung Ki-hyun, executive vice president and head of the Platform Business Center at LG. “By leveraging the synergies between the two companies, we aim to expand our open ecosystem and external integration services to provide customers with a more diverse and multidimensional spatial experience.”
LG webOS, Alfonso
According to market research firm TechNavio, the global smart home market is expected to grow from $81.2 billion in 2023 to $260.24 billion by 2028, at a compound annual growth rate of 26.2%.
LG's acquisition of Athom underscores the company's commitment to transform from a hardware manufacturer to a software-based platform business.
LG Electronics' WebOS for automobiles powers Kia EV3
LG entered the TV platform market in 2021 with its webOS platform, offering thousands of movies and other streaming content for free to smart TV buyers.
To support this business transformation, LG acquired US-based TV data analytics startup Alphonso Inc. Alphonso now operates as LG Ad Solutions Co., a core part of LG's webOS content and services business.
“LG is evolving into an intelligent spatial solutions company that connects and expands experiences in different living spaces. We will continue to make strategic investments to shift our business paradigm, as demonstrated by our continued foray into platform-based home appliance services such as the webOS advertising platform and AI Home,” said Chief Executive Officer Cho Ju-wan, known in the West by his English name William Cho.
Please email Kim, Chaeyoung, Hwang, Jeongsoo, and Imyeong Park at why29@hankyung.com.
This article was edited by In-Soo Nam.