The acquisition aims to combine Athom's open smart home ecosystem with LG's artificial intelligence-powered appliances and generative AI to create an "AI Home" experience.
LG also signed to acquire the remaining 20 percent within three years.
Athom's Homey Pro hub connects over 50,000 appliances and Internet of Things devices from various brands using multiple connectivity protocols. The company's app store features about 1,000 applications for controlling diverse products.
LG intends to integrate Athom's connectivity with its ThinQ platform and upcoming generative AI to offer optimal space solutions. The company plans to expand this AI Home concept to commercial spaces and mobility, developing an "Intelligent Space" solution.
This move aligns with LG's strategy to transform from a hardware-focused company to a software-based platform provider. In 2021, LG entered the TV platform business with webOS and acquired a U.S. advertising and data analytics firm.
LG CEO Jo Joo-wan said the company is evolving into an intelligent space solution provider, connecting experiences across various customer environments.
He emphasized continued strategic investments to shift the business paradigm towards platform-based appliance services and solutions.
The global smart home market is projected to grow from $81.2 billion in 2023 to $260.2 billion by 2028, according to TechNavio.
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