Samsung Acquires German Lighting Specialist Novaled
Samsung has reportedly closed a deal to buy German lighting specialist Novaled AG for 260 million Euros ($347 USD) to improve its production of OLED displays, reports the WSJ.
Samsung has been on an acquisition spree, snapping up small companies with technologies used in consumer electronics. The latest deal will help the group secure a better foothold in the market for next-generation displays employing organic light-emitting diodes. OLED displays are now used widely in smartphones but are also increasingly being adopted in televisions for their energy efficiency and ability to reproduce vivid colors. Revenue in the OLED display market is poised to grow to $20 billion by 2017 from just $8 billion in 2012, according to market research firm DisplaySearch.
Novaled will be acquired via a Samsung affiliate called Cheil Industries and Samsung Electronics. Cheil will acquire a 50% stake in the company and Samsung Electronics will buy 40%. It already owns 10% via its venture capital arm.
"Through the acquisition of Novaled, Cheil Industries strengthens its leading position in the field of electronic materials, and we are able to achieve significant synergies in research and development of OLED material of the next generation," said Jong-Woo Park, chief executive of Cheil Industries.
Novaled has around 130 employees and primarily makes OLEDs for Samsung.