The acquisition will bring Samsung SDS’ mobile app-connected digital door locks and wall pads to Zigbang and is intended to launch the company into the smart home industry. The company previously stated plans to become a one-stop real estate shop.
This smart home IoT division is the only B2C business that Samsung SDS had, following a failed attempt to sell the unit to Ireland-based Allegion in 2016. The South Korean purchasing company says the unit will accelerate its smart home market growth and increase cash flow, with the SDS unit generating revenue in more than 16 countries, according to Zigbang president Sunwoong Lyuh.
The two companies expect the acquisition agreement to be completed in the second quarter of 2022, but declined to state a deal valuation. Media reports estimate a price of $85 billion.
This is only the latest acquisition for Zigbang. The company previously acquired Korean proptech HogangNoNo in 2018, co-living platform WooZoo and commercial brokerage platform Sugarhill in 2019, and residential management service platform Movill in 2021.
This long, consistent list of purchases highlights Zigbang’s goal to digitize housing needs from end-to-end, with the company saying it plans to add self-storage, home inspections and repair services to its existing real estate and smart home device services.
This approach seems to be working, with 33.5 total million users (8.1 million monthly active) and over 600 employees. While the user base looks solid, it is unclear whether actual revenue is driving these purchases or the $187.7 million the company has raised to date.
The company was valued at $908 million as of June 2021, based on a report by the South Korean Ministry of SMEs and startups.