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Samsung acquires SmartThings for $200m, eyes Internet of Things profits

Samsung has snapped up a major player in the smart home and Internet of Things arena, namely SmartThings.

The company, which got off the ground via crowdfunding site Kickstarter, was apparently acquired for around the $200 million (£120 million) mark, according to TechCrunch.

It shows Samsung's intention to compete with the tech giants like Google in this space, with the Big G of course famously picking up Nest in a massive $3.2 billion (£1.9 billion) deal, and of course Apple developing its HomeKit system which was announced at this year's WWDC in June.

Samsung also underlined that it's targeting the smart home and also office yesterday, with an announcement that a big part of the firm's IFA revelations will be the Smart Office platform, with a number of solutions to allow for a slicker and more connected office environment.

As for SmartThings, in a blog post, the firm said that it would continue to run as it always has, with the same team as an independent company, although it will relocate to a new HQ in Palo Alto. It will nestle within Samsung's Open Innovation Centre group, apparently.

The blog post stated: "We believe that there is an enormous opportunity to leverage Samsung's global scale to help us realise our long-term vision. While we will remain operationally independent, joining forces with Samsung will enable us to support all of the leading smartphone vendors, devices, and applications; expand our base of developers and enhance the tools and programs that they rely on; and help many more people around the world easily control and monitor their homes using SmartThings."

Related: Is the Internet of Things the most over-hyped technology ever?

This deal was first rumoured last month, and sees Samsung gets its claws further into an IoT sector which is expected to expand massively come 2020. The company already makes net-connected home appliances such as fridges, of course.