이 기사는 2021년 12월 08일 08:06 thebell 에 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)