Samsung to Purchase German-Based OLED Firm Novaled for $347 Million

Even though Apple and Samsung continue to fight against one another, the two seem to be inseparable. The South Korean tech giant still makes a number of iOS device components, including processors and displays. That being said, it was interesting to see that Samsung is in the process of purchasing Novaled, a German-based OLED (organic light-emitting diode) company, for a staggering 260 million euros or $347 million USD. According to The Wall Street Journal:

<<Samsung will buy Novaled through affiliate Cheil Industries Inc.,001300.SE -0.47% which makes electronic materials for OLED displays, and its electronics arm, Samsung Electronics Co. 005930.SE +1.07%>>

This move shows that Samsung is committed to OLED technology, which is more energy efficient and usually produces more vivid images than competing technology. As of right now, it is being said that the OLED panel business will more than double in the next four years and Samsung is trying to secure a tighter grip in the space.

<<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.>>

Samsung has been supplying Apple with panels for its iOS devices for quite some time. According to a recent report from DisplaySearch, Apple ordered over four million 9.7-inch displays from Samsung last quarter and the two are set to partner up again on the upcoming iPad mini refresh as well. As far as Novaled goes, it was founded in 2001 by German research firm Fraunhofer Institute and the Technical University of Dresden. The company makes OLEDs for displays and lightning and will continue to do so after the acquisition.

Source: The Wall Street Journal

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