Smartphone manufacturer Samsung and its display manufacturer subsidiary Cheil Industries have acquired Organic Light Emitting Diode (OLED) manufacturer Novaled, confirming speculation of acquisition from last week.
In a transaction that values Novaled at €260m ($345m), Cheil acquired 50% of the firm. Samsung itself will pick up 40% while the firm’s venture unit, Samsung Venture Investment, will retain its original 10% stake.
Germany-based Novaled was founded in 2001 as a spin-out from the Technical University and the Fraunhofer Institute of Dresden. It has a number of partnerships with OLED innovators, and holds over 500 patents, giving it a commanding position in OLED tech, which is used in smartphone displays.
To date, Novaled has attracted $32.5m in venture backing from a number of sources.
Cheil Industries’ CEO Jong-Woo Park commented: “Leadership in future display market will be determined by technological capacity. This acquisition is expected to generate significant synergy in new-generation OLED materials R&D and will play a critical role in enhancing Cheil Industries’ market position as a global leader in electronic materials”.
This article first appeared in Global University Venturing.