British Gas has announced that they are acquiring AlertMe, the connected home company whose platform powers the Hive Active Heating system, which is essentially British Gas’s competitor to the Nest Thermostat.
The deal is worth around £44 million net, with the acquisition price taking into account the 21 percent of AlertMe that is already owned by the company.
Strategic Acquisition for Market Leadership
British Gas today announced it is to acquire AlertMe, a UK-based company that creates products and services linked by the internet of things to enable connected homes.
The deal will create the UK’s leading connected homes provider, by bringing together British Gas’ ability to innovate for mass market consumers with AlertMe’s next generation Internet of Things technology and expertise. The acquisition will create a highly experienced team to accelerate the development of new connected home services in the UK and worldwide, including to British Gas’ 11 million customer homes in Britain.
The two companies are expected to complete the deal by the end of the first quarter of 2015, so that would be by the end of March.
Implications for the Smart Home Market
This acquisition is a significant move for British Gas as it positions itself as a leader in the rapidly growing smart home market. The Hive Active Heating system, which allows users to control their heating remotely via a smartphone app, has already gained popularity among consumers. By acquiring AlertMe, British Gas aims to enhance its product offerings and provide a more integrated and seamless experience for its customers.
AlertMe’s expertise in the Internet of Things (IoT) will be a valuable asset for British Gas. The IoT is a network of physical devices that are connected to the internet, allowing them to collect and exchange data. This technology is at the heart of the smart home revolution, enabling devices to communicate with each other and be controlled remotely. With AlertMe’s technology, British Gas can develop new products and services that make homes more efficient, secure, and comfortable.
For example, British Gas could introduce smart lighting systems that adjust based on the time of day or occupancy, or security systems that can be monitored and controlled from a smartphone. The possibilities are vast, and the acquisition of AlertMe will help British Gas stay at the forefront of innovation in the smart home market.
Benefits for Consumers
Consumers stand to benefit greatly from this acquisition. With the combined expertise of British Gas and AlertMe, customers can expect more advanced and user-friendly smart home products. These products can help homeowners save energy and reduce their utility bills by optimizing the use of heating, lighting, and other systems.
Moreover, the integration of AlertMe’s technology with British Gas’s existing services will provide a more cohesive and streamlined experience for users. For instance, customers could manage all their smart home devices through a single app, making it easier to control and monitor their home environment.
Additionally, the acquisition could lead to the development of new features and services that enhance home security and convenience. For example, smart locks that can be controlled remotely, or sensors that detect water leaks and alert homeowners before significant damage occurs.
Future Prospects
Looking ahead, the acquisition of AlertMe by British Gas is likely to spur further innovation in the smart home market. As more consumers adopt smart home technologies, the demand for integrated and easy-to-use solutions will continue to grow. British Gas, with its extensive customer base and expertise in energy services, is well-positioned to meet this demand.
Furthermore, the acquisition could pave the way for British Gas to expand its smart home offerings beyond the UK. With AlertMe’s technology, British Gas could develop products and services that appeal to international markets, potentially opening up new revenue streams and growth opportunities.
The acquisition of AlertMe by British Gas is a strategic move that will strengthen its position in the smart home market. By combining their expertise and resources, the two companies can develop innovative products and services that enhance the comfort, security, and efficiency of homes. This acquisition is a win-win for both British Gas and its customers, promising a future of smarter, more connected living.
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