LG Electronics acquires an 80 percent stake in Athom, a Dutch smart home platform company, aiming to enhance its AI-enabled ThinQ platform and create intrinsically intelligent homes. The acquisition aligns with LG’s shift towards software and platforms, in line with its vision to become a ‘Smart Life Solution Company’.
LG Electronics Acquires Dutch Smart Home Platform Athom to Advance AI-Driven Home Technology
SEOUL, South Korea – July 8, 2024 – LG Electronics has announced the acquisition of an 80 percent stake in Athom, a prominent smart home platform company based in Enschede, Netherlands. This deal includes an option to acquire the remaining 20 percent over the next three years. The South Korean electronics giant aims to solidify its position in the open smart home ecosystem by integrating Athom’s expertise with its own artificial intelligence (AI) capabilities.
The move is strategic for LG, which intends to meld Athom’s connectivity technology with its AI-enabled ThinQ platform. Athom’s portfolio includes the ‘Homey’ smart home hub, a device capable of connecting thousands of appliances, sensors, and lighting devices, offering substantial interoperability through various communication protocols like Wi-Fi, Bluetooth, and the emerging Matter standard.
By incorporating Athom’s technology, LG envisions creating homes that are not just smart but intrinsically intelligent. These AI homes will leverage generative AI to manage appliances and Internet of Things (IoT) devices, tailoring the living environment according to the user’s preferences and routines. Beyond the residential sphere, LG plans to bring this technology into commercial spaces and mobility environments, embodying the concept of ‘Intelligent Space’.
Founded in 2014, Athom has grown a robust user base across Europe, and its Homey product line has extended its availability to markets in Australia, Singapore, the United States, and Canada. The Homey ecosystem is distinguished by its openness, supporting over 50,000 devices and boasting around 1,000 applications in the Homey App Store. This ecosystem includes official partnerships with brands like Philips Hue and IKEA, enriched by a vibrant developer community that continually expands the platform’s capabilities.
LG’s acquisition aims to leverage Athom’s strengths in connectivity to enhance the scalability and versatility of its AI home solutions. With the integration of Athom’s technology, LG expects to gain more profound insights into customer usage patterns, accelerating the deployment of highly personalized services.
“The acquisition of Athom is a cornerstone for our AI home business,” stated Jung Ki-hyun, executive vice president and head of LG’s Platform Business Center. “By leveraging the synergy between the two companies, we will expand our open ecosystem and external integration services, aiming to provide customers with more diverse and multidimensional space experiences.”
Although Athom will continue to function independently, maintaining its branding and operational structure, LG plans to maximize synergies in business operations, research and development, and platform utilisation. This approach ensures that Athom’s unique strengths are not overshadowed while benefiting from LG’s resources and market presence.
This acquisition is part of LG’s broader strategy to shift from a hardware-centric business model to one that is increasingly focused on software and platforms. In 2021, LG transitioned its TV business to a more software-oriented model by integrating the webOS platform, supported by its acquisition of the US-based technology firm Alphonso, which now operates as LG Ad Solutions.
LG’s overall objective is evident – to transform into a ‘Smart Life Solution Company’ that offers differentiated value through connected devices and AI. Market research firm TechNavio forecasts that the global smart home market will expand from USD 81.2 billion in 2023 to USD 260.24 billion by 2028, reflecting an average annual growth rate of 26.23 percent.
“LG is evolving into an intelligent space solutions company that connects and expands experiences in various living spaces,” said William Cho, CEO of LG Electronics. “We will continue to make strategic investments to shift our business paradigm, as evidenced by our successive entries into platform-based appliance services and solutions.”
As LG continues its strategic investments and further integration of smart technologies, the acquisition of Athom marks another significant step towards influencing the future of intelligent home and living space solutions.
