LG Expands Smart Home Dominance with Athom Acquisition

SEOUL, South Korea — LG Electronics (066570. KS) has acquired an 80% stake in Athom, a Netherlands-based smart home platform company, intending to purchase the remaining 20% within three years.

The acquisition enhances LG's connectivity within open smart home ecosystems by integrating Athom's technology with LG's AI platform.

LG aims to merge Athom's comprehensive device connectivity with its ThinQ platform to construct an AI-driven home environment. 

This integration is anticipated to facilitate the creation of personalized living spaces managed by generative AI.

Athom, established in 2014, is distinguished for its "Homey" smart home hub and cloud-based subscription services. 

The company's flagship product, Homey Pro, can connect to over 50,000 devices using various connection methods.

LG has indicated it intends to maintain Athom's operational and branding autonomy following the acquisition. 

This is intended to maximize growth potential and foster synergies.

This strategic move represents a pivotal shift in LG's business strategy, moving away from a hardware-centric approach and towards a software-based platform. 

LG's objective is to become a "Smart Life Solution Company," which entails establishing continuous relationships with customers through the use of connected devices.

As indicated by the market research firm TechNavio, the global smart home market is projected to grow from $81.2 billion in 2023 to $260.24 billion by 2028.