Samsung Electronics (005930.ks) opens a new tab on Wednesday, as it had agreed to buy the German Flakt Group for 1.5 billion euros ($ 1.68 billion), as it seems to meet the growing demand for cooling of data centers used for artificial intelligence projects.
In the greatest acquisition of the South Korean company in eight years, you will buy the manufacturer of air conditioning systems and heating systems of the private capital group Triton.
Samsung said in a statement that the data center segment has a high input barrier that requires global supply experience and the ability to present optimal designs and solutions. He hopes that the Flaktgroup agreement will close within this year.
Samsung, led by President Jay Y. Lee, said at a shareholders meeting in March that he was looking for “significant” agreements this year to boost growth after being left behind the rivals to take advantage of the rise of Chip AI leaders led by Nvidia (NVDA.O), opens a new tab. Samsung added that it was aimed at seeking acquisitions in the chip industry.
Investors awaiting larger agreements involving Samsung’s effective cow chip business could feel disappointed by Flaktgroup’s announcement, analysts said.
“This acquisition is more about strengthening its consumer electronics and appliances business, so it is not the agreement that changes the game that the market had been waiting for,” said Greg Roh, Hyundai Motor Securities research leader.
Samsung’s appliance business also manufactures commercial cooling and heating systems.
“It seems that the company is playing for sure instead of making bold bets,” Roh said.
The actions in the consumer electronics and the semiconductor manufacturer increased 0.7% in line in line with the Benchmark Kospi (.ks11), opens a new tab.
Samsung has rejected the main acquisitions since its purchase of $ 8 billion of the manufacturer of electronic car products, Harman International Industries, in 2017. This month, Harman agreed to buy the audio business of the American firm Masimo (MASI.O), opening a new tab for $ 350 million.
Samsung said Consumer Audio is a new growth engine, along with cooling and heating systems, medical devices, and robotics.
In December, Samsung became the largest shareholder of Rainbow Robotics (277810.kq) in South Korea (277810.kq), opening a new tab with the purchase of an additional participation of 267 billion won ($ 189.03 million).
Last year, Samsung formed a joint company with Lennox (LII.N), opens a new tab in the heating, ventilation and air conditioning (HVAC) sector, and was among the bidders for Johnson Controls International (JCI.N), opens new TAB HVAC assets that were bought by rival Robert Bosch for $ 8 billion last year.
($ 1 = 0.8937 euros)
($ 1 = 1,412.5000 cattle)
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