Samsung SDS to Sell 'Home IoT Business' to Zigbang

[Image source=Yonhap News]

[Asia Economy Reporter Kang Nahum] Samsung SDS is planning to sell its Home IoT business to the real estate brokerage platform Zigbang.

According to industry sources on the 14th, Samsung SDS recently selected the real estate brokerage platform Zigbang as the preferred bidder for the acquisition of its Home IoT business and has begun the sale process.

This is interpreted as Samsung SDS judging that it is difficult to secure an advantage in the business-to-consumer (B2C) market, such as digital door locks, with its business-to-business (B2B) capabilities and assets. By selling the Home IoT business, it plans to focus on B2B businesses such as IT services and logistics.

Previously, Samsung SDS negotiated the sale of its Home IoT business with the security company Allegion in 2016, but the talks fell through.

Zigbang's move to acquire the Home IoT business appears to be an effort to lead the digital transformation of overall residential life as a comprehensive proptech (a combination of property and technology) company.

A Zigbang representative said, "We participated in the acquisition expecting that the combination of our software capabilities and Samsung SDS's hardware technology and expertise will innovate the smart home industry both domestically and overseas," adding, "We will do our best to ensure stable employment transition."

This content was produced with the assistance of AI translation services.