Another Acquisition

YESCO Electronics signs adorn Picadilly in London.
YESCO Electronics signs adorn Picadilly in London.

 

Samsung Electronics is actively engaged in M&A deals. In fact, it has just struck its third deal this year. Since the Korean tech giant is in desperate need of creating new growth engines after smartphones, it is focusing on buying new businesses.  

Samsung announced on Mar. 4 that it purchased LED sign and display manufacturer YESCO Electronics. The U.S.-based firm is recognized for its digital LCD displays at Piccadilly Circus in London, Wynn Las Vegas, the Cosmopolitan of Las Vegas, and Aria Resort and Casino. 

With the acquisition, the Korean company will have a lineup of indoor and outdoor LCD digital displays.

Samsung has bought 22 companies since 2007. The industry is paying attention to the fact that 8 M&A transactions have been made after Chairman Lee Kun-hee took a back seat in May 2014. 

The focus of its M&A deals was to strengthen its hardware business until 2010, as shown by its purchase of Tel Aviv-based fabless chip maker Transchip. After its acquisition of Medison for the medical device business in 2011, the direction of its M&A strategy changed toward the development of technical skills and new business. Since May 2014, the focus has been on beefing up its B2B business and nurturing its software business. 

An industry source said, “Under the leadership of Chairman Lee, Samsung concentrated its efforts on technical innovations and product capabilities. Vice Chairman Lee, on the other hand, will try to change the direction of Samsung Electronics to become a total service provider, which encompasses software and infrastructure, in addition to products.”

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