LG buys into intelligent space market

  • July 15, 2024
  • Michael Nadeau

LG Electronics (LG) has acquired an 80 percent stake in Athom, a smart home platform company based in Enschede, Netherlands, with the intent to to acquire the remaining 20 percent within the next three years. LG stated that the move will enhance its connectivity within open smart home ecosystems, and help reach its goal to lead in Ai-driven home innovation. The company plans to integrate Athom’s capabilities with LG’s Affectionate Intelligence technology.

LG plans to integrate Athom’s connectivity, which links thousands of appliances, sensors, and lighting devices, with the generative AI-enabled LG ThinQ platform. This integration will create an AI home that delivers optimal space solutions by gaining a deeper understanding of the customer, according to the company. In turn, LG expects customers to engage with generative AI, which will manage appliances and IoT devices to create a personalized environment tailored to their preferences.

LG envisions expanding the differentiated customer experience of AI homes to other places where customers spend their time, such as commercial spaces and mobility environments, to realize the concept of “intelligent Space.”

Athom also sells the Homey smart home hub, which connects with home appliances and IoT devices, and offers cloud subscription services. Founded in 2014, Homey has expanded primarily in Europe with a claimed customer base of hundreds of thousands. Athom has developed its own hub and OS to create an independent smart home ecosystem. Its flagship product, Homey Pro, can connect to more than 50,000 devices and supports connection methods, including Wi-Fi, Bluetooth, Z-Wave, Matter, and Thread. The Homey App Store, managed by Athom, offers around 1,000 applications for connecting and controlling home devices from brands such as Philips Hue and IKEA.

LG claims it can enhance the scalability required for implementing AI homes by integrating its LG ThinQ platform’s smart home technology with Athom’s open ecosystem and IoT device connectivity. The acquisition will also enable LG to incorporate third-party devices and services into its ecosystem. This integration will provide LG with deeper insights into customer usage patterns and expedite the delivery of personalized services.

“The acquisition of Athom is a cornerstone for our AI home business,” said Jung Ki-hyun, executive vice president and head of LG’s Platform Business Center, in a press release. “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.”

Athom will continue to operate independently, maintaining its business operations and branding.