LG Acquires Homey: A Smart Home Revolution in the Making
Enschede, Thursday, 4 July 2024.
LG Electronics has purchased Dutch smart home platform Homey for €55 million, signaling a major push into the interconnected home device market. This strategic move aims to integrate Homey’s technology with LG’s ThinQ ecosystem, potentially transforming how we interact with our living spaces.
The Acquisition and Its Implications
LG Electronics, the South Korean tech giant, has acquired an 80% stake in Athom, the Dutch company known for its Homey smart home platform, for €55 million. The acquisition was announced on Wednesday, 3 July 2024, and it marks a significant move for LG as it aims to integrate Homey’s advanced smart home technology into its own product line[1].
Athom’s Continued Independence
Despite the acquisition, Athom will continue to operate independently, maintaining its business operations and branding. Both founders, Emile Nijssen and Stefan Witkamp, will remain as executives of Athom, ensuring that the company’s vision and commitment to a privacy-first smart home platform are upheld[2].
Integration with LG’s ThinQ Ecosystem
LG plans to integrate Homey’s technology into its ThinQ ecosystem, which is designed to link appliances, sensors, and lighting devices. This integration aims to create an ‘AI home’ that delivers optimal space solutions by gaining a deeper understanding of the customer’s preferences. The Homey platform, which connects over 50,000 devices and supports various connection methods, will play a crucial role in this transformation[3].
A Strategic Move in the Smart Home Market
This acquisition is part of LG’s broader strategy to transition from a hardware-focused company to a software-based platform business. By leveraging the synergy between LG and Athom, the company aims to expand its open ecosystem and external integration services, providing customers with more diverse and multidimensional space experiences[4].
Future Prospects and Market Position
The global smart home market is projected to reach $262.35 billion by 2028, with an annual growth rate of 26.23%. LG’s investment in Athom and the integration of Homey’s technology are expected to enhance its competitiveness in this rapidly expanding market. LG Group has also announced plans to invest over $74 billion in the next five years to foster AI and other future growth drivers[5].