Korean Portal Zigbang Acquires Samsung SDS' Home Internet of Things Unit

South Korean portal company Zigbang is moving into the smart homes industry with the announcement that it is to acquire Samsung SDS' home internet of things (IoT) unit.

Since 1985 Samsung, known around the world nowadays for manufacturing electronics, has operated its SDS division with the goal of producing IT solutions and services. The division is almost entirely B2B, selling software to businesses, however, its home internet of things branch sells smart door locks to consumers.

According to Korean journalist Kate Park, who broke the story in TechCrunch, the acquisition is estimated to have cost Goldman Sachs-backed Zigbang some $85 million and comes six years after Samsung tried to sell its home internet of things division to Irish door security specialist Allegion.

Currently only producing smart locks, Samsung SDS' home IoT division will give Zigbang a bridge into the smart homes market as it looks to expand into revenue streams adjacent to real estate transactions such as self-storage, repairs and home inspection.

“By combining Zigbang’s residential contents with Samsung [SDS]’ home IoT hardware, we will revolutionize the smart home market,” CEO of Zigbang Sung-woo Ahn said in a statement.

Zigbang is on record that it plans to digitize people's entire experience with their homes and it is not the only portal company with similar lofty ambitions. Leading Chinese PropTech company KE Holdings (operator of brokerage Lianjia and portal KE.com) has similar ambitions and is leaning heavily into VR shopping and home decoration.