Samsung to Acquire German OLED Maker Novaled for $347M

Samsung to Acquire German OLED Maker Novaled for $347M

South Korean electronics giant Samsung and its affiliate Samsung Cheil Industries has agreed to acquire German organic light-emitting diode (OLED) manufacturer Novaled for about €260 million ($347 million), according to a report published Friday.

Samsung itself is already a huge provider of OLED and AMOLED panels, particularly for mobile devices such as smartphones and tablets, but the deal will help Samsung with its manufacturing of smartphone and television displays, which are increasingly include OLED displays. Samsung sells some of the most popular smartphones in the world, including the Galaxy S4, Galaxy S3, the Galaxy Note 2 and Galaxy Note 3 which is expected to be unveiled Sept. 4.

The Wall Street Journal, which broke the news, said that Samsung is going to buy the firm through one of its affiliates that operates under the name Cheil. Cheil will hold a 50 percent stake in the company, Samsung Electronics will hold 40 percent, and the final 10 percent will continue to be owned by one of Samsung’s venture capital businesses.

“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 Cheil CEO Jong-Woo Park. Samsung hopes the deal will help boost its OLED business moving into the future.

Revenue in the OLED display market is predicted to grow to $20 billion in 2017 from $8 billion in 2012, according to DisplaySearch, so the move could pay off quite well for Samsung if it can move enough displays.

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Write by: RC - Sunday, August 11, 2013