Facebook icon LinkedIn icon Twitter icon


British Gas Commits To Home Automation Through AlertMe Deal

Date: 30 March 2015

Access This Report

This report is available to Verdantix clients with a Knowledge Service Subscription.

Verdantix clients:

Not a client but want access
to this report?


7 pages 

EXECUTIVE SUMMARY

In March 2015, British Gas acquired connected home technology firm, AlertMe, to bring its total investment in the firm to £65 million ($96 million). The deal gives British Gas full ownership of AlertMe’s platform for connected home services, and provides AlertMe a distribution channel for its services across tens of millions of homes. British Gas had been a strategic partner to AlertMe for a number of years and previously owned a 21% stake in the firm. The deal will put British Gas on the front foot in the home automation market, where it has been growing the user base of its Hive Active Heating service, which is powered by AlertMe technology. Our analysis finds that the unique set of capabilities provided by AlertMe will support British Gas’s customer retention and acquisition strategies. In the longer term, value drivers for the connected home proposition are tied to several market developments that are not fully in British Gas’s hands.

TABLE OF CONTENTS

BRITISH GAS COMMITS TO HOME AUTOMATION THROUGH ALERTME DEAL
AlertMe Will Provide British Gas With An Open Platform For The Connected Home
Deal Will Support Customer Retention And Acquisition Strategies In The Near Term
Mass Market Connected Home Opportunities Are Still Not Clear In The UK

ORGANIZATIONS MENTIONED

ADT, Alarm.com, AlertMe, AT&T, Belkin, Blacksumac, Bord Gáis, British Gas, Centrica, Comcast, Direct Energy, E.ON, Ecobee, ESG, Essent, FrontPoint Security, GE, Google, Honeywell, iControl Networks, Interlogix, LG Electronics, Lowe’s, Matrix, Nest Labs, npower, PowerCloud Systems, Samsung, SSE, Tado, Vivint, Wattbox