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Samsung acquires SmartThings for $200 million

Aug 15 2014, 1:34am CDT | by , in News | Technology News

Samsung acquires SmartThings for $200 million

By acquiring SmartThings, Samsung is going head to head with Google, who recently acquired Nest, maker of smart thermostats.

Samsung has acquired SmartThings, a startup that makes home automation products. Although the financial details of the deal was not revealed, sources told Re/code that Samsung paid around 200 million to acquire the company.

In a statement posted on its website, SmartThings CEO Alex Hawkinson said that the company will operate independently under Samsung's Open Innovation Center group. The team will relocate to a new headquarters in Palo Alto, California.

For Alex Hawkinson, it's about pursuing a long-term vision to create an open smart home platform. It's also about leveraging opportunities.

"While we will remain operationally independent, joining forces with Samsung will enable us to support all of the leading smartphone vendors, devices, and applications; expand our base of developers and enhance the tools and programs that they rely on; and help many more people around the world easily control and monitor their homes using SmartThings," he said.

Hello, Smart Home - Part 2 from SmartThings on Vimeo.

For the record, Samsung's Open Innovation Center or OIC is led by ex-Googler David Eun. The division also specializes in building software services, which makes sense. SmartThings isn't just about making smart things, it's also committed to creating an open platform - a key element that caught the eye of Samsung.

By acquiring SmartThings, Samsung is going head to head with Google, who recently acquired Nest, maker of smart thermostats.

SmartThings debuted on Kickstarter, raising $1.2 million in funding. Since then, the company has raised an estimated $15.5 million from Greylock Partners and Highland Capital Partners, according to TechCrunch. 

Check out the official statement below:

Friends,

Today is a big day for SmartThings. I’m excited to announce that SmartThings has been acquired by Samsung and will operate as an independent company within Samsung’s Open Innovation Center group.

It has always been our goal to create a totally open smart home platform that brings together third-party developers, device makers, and consumers. We’re thrilled that Samsung fully supports this vision.

We will continue to run SmartThings the way we always have: by embracing our community of customers, developers, and device makers and championing the creation of the leading open platform for the smart home. Our growing team will remain fully intact and will relocate to a new headquarters in Palo Alto, CA. In short: SmartThings will remain SmartThings.

We believe that there is an enormous opportunity to leverage Samsung’s global scale to help us realize our long-term vision. While we will remain operationally independent, joining forces with Samsung will enable us to support all of the leading smartphone vendors, devices, and applications; expand our base of developers and enhance the tools and programs that they rely on; and help many more people around the world easily control and monitor their homes using SmartThings.

We’re tremendously excited about the possibilities ahead, and owe a heartfelt thank you to the people who have helped us get here: our amazing customers and supporters. To all of our earliest Kickstarter backers who believed in our vision; to our incredible investors and advisors, to our partners who have helped us spread the word, to our community of developers whose contributions continue to propel the open platform, to our all of our customers whose feedback, encouragement, and stories have driven us; and to our wonderful and growing team whose tireless work has helped propel us to where we are today: We cannot thank you enough.

Onward!

- Alex

 

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