The integration of the LG Electronics's smart platform LG ThinQ and Athom's Homey / Courtesy of LG Electronics

LG Electronics said Wednesday it has signed a deal to acquire the Netherlands-based home automation company Athom B.V. in a bid to create an open smart home ecosystem and enhance connectivity to home appliances and IoT devices.

According to the company, LG Electronics will initially acquire an 80 percent stake in Athom, with plans to acquire the remaining 20 percent over the next three years. But it did not disclose further financial details.

Founded in 2014, Athom is a smart home platform company renowned for its Homey smart home hub, which connects home appliances and IoT devices. Homey is available in Europe, Australia, North America, and Singapore.

The Dutch company has secured a loyal customer base with its unique smart home ecosystem, which is highly open and supports various connection methods, such as Wi-Fi, Bluetooth, Z-Wave, Matter, and Thread.

Homey is compatible with products from global brands, such as Philips and Ikea.

LG Electronics said it plans to create AI-operated homes that understand customers' needs and provide optimal solutions through the purchase of Athom. This will be achieved by leveraging Athom's connectivity and integrating generative AI into LG's ThinQ platform

The acquisition of Athom will also enable LG Electronics to integrate third-party devices and services to obtain more customer usage data and accelerate the delivery of customized services.

LG Electronics said it will keep Athom's operating system and brand independent after the acquisition in a way to maximize the Dutch firm's growth engines and unique strengths, while promoting synergies in terms of business and R&D capabilities and platforms.

The Korean tech company has been advancing its digital transformation strategy, aiming to evolve into a software-based platform company beyond its traditional hardware focus.

In 2021, LG Electronics acquired the U.S.-based TV data analysis startup Alphonso for $80 million to enhance its software and service capabilities in the TV business. (Yonhap)