Proptech startup Zigbang nears deal to buy Samsung SDS’ smart home business Potential deal likely to be worth more than $85 million

Translated by Ryu Ho-joung 공개 2021-12-08 08:10:05

이 기사는 2021년 12월 08일 08:06 더벨 유료페이지에 표출된 기사입니다.

South Korean proptech startup Zigbang is nearing a deal to buy Samsung SDS’ home Internet of Things division for more than 100 billion won ($85 million) in what would be the biggest acquisition by a startup in the country.

The real estate app operator is in advanced talks with Samsung SDS to acquire its business making door locks and wall pads after completing due diligence in mid-November, industry sources said on Monday.

It is said that a rough agreement was reached between the two sides, with the purchase price expected to be in the lower to mid-100 billion won range. The deal could be signed as soon as the middle of this month.

Zigbang reportedly plans to finance the potential acquisition through cash on hand and by raising capital from investors, rather than through debt financing. “Zigbang has already been approached by several investors for potential investment,” a source familiar with the company said.

In its latest Series D funding round, which was closed in June 2019, the startup raised 160 billion won at a 700 billion won valuation. This brought the total raised to 226.5 billion won.

Zigbang had approximately 65.4 billion won in cash resources at the end of 2020. Given this and the expected value of the deal, new funding worth 100 billion won or less would be sufficient to fund the potential acquisition.

It is very unlikely that either side would withdraw from the deal at the last minute, industry watchers said. The acquisition of Samsung SDS’ home IoT division would help accelerate Zigbang’s revenue growth, which has stalled in recent years.

For Samsung SDS, this is its second attempt to sell the division. It had entered negotiations with Irish security solution provider Allegion about the sale in 2016 but the deal ultimately fell through. (Reporting by Byungkeun Kam)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재 및 재배포 금지 >

더벨 서비스 문의


유료 서비스 안내
주)더벨 주소서울특별시 중구 무교로 6 (을지로 1가) 금세기빌딩 5층대표/발행인성화용 편집인이진우 등록번호서울아00483
등록년월일2007.12.27 / 제호 : 더벨(thebell) 발행년월일2007.12.30청소년보호관리책임자김용관
문의TEL : 02-724-4100 / FAX : 02-724-4109서비스 문의 및 PC 초기화TEL : 02-724-4102기술 및 장애문의TEL : 02-724-4159

더벨의 모든 기사(콘텐트)는 저작권법의 보호를 받으며, 무단 전재 및 복사와 배포 등을 금지합니다.

copyright ⓒ thebell all rights reserved.