LG lately announced acquiring 80 percent stake in Netherlands-based smart home platform company Athom. It is marked as a significant step in the evolution of the tech giant. It is learned that plans are also being made to acquire the remaining 20 percent and it will be implemented within a period of next three years. Hence, it can be said that the move highlights commitment of LG to transform its business model from a traditional hardware to a more dynamic software-based platform approach.
Athom was founded in 2014 and since then has gained enough popularity with its smart home hub named Homey that boasts the ability to connect more than 50,000 devices through Wi-Fi, Bluetooth, Z-Wave, Matter or Thread. The connectivity is impressive. Homey App Store is equipped with about 1,000 applications for home device control. It highlights the robust platform of Athom as well as its strong customer base.
Capabilities of Athom will be integrated with LG’s generative AI-enabled ThinQ platform. LG aims to create a highly personalized AI home environment with this. The combination is promising and is to deliver unique and tailored experiences. It will leverage the synergy between Athom’s extensive device connectivity and LG’s advanced AI technology.
Jung Ki-hyun, executive vice president and head of LG’s Platform Business Center, described the acquisition as a cornerstone for their AI home business. He emphasized the goal of expanding the open ecosystem and external integration services.
Athom will continue to operate independently even after the acquisition. It will maintain its business operations and branding. The decision reflects LG’s strategy to preserve the unique strengths and innovative spirit of Athom. It will simultaneously enhance its own platform capabilities. The goal is to integrate as well as synergize with the use of Athom’s expertise to incorporate third-party devices and services into LG’s ecosystem.
