According to Cnet, the deal with Germany-based Novaled is expected to help the company with the increasing demand for the OLED screens used in smartphones and televisions.
Samsung Electronics and its affiliate Cheil Industries will together buy the company for the said amount and Cheil will purchase a 50 percent chunk of Novaled while Samsung will take 40 percent as the remaining 10 percent is already owned by Samsung's venture capital unit.
Novaled develops the OLEDs (organic light-emitting diodes) that are used in the displays of smartphones and increasingly those of TV sets. These screens are thinner, lighter, and brighter than conventional LED screens, but are more difficult to manufacture.
The report said that as Samsung has been facing technical challenges for increasing the production of OLED display panels especially for large-screen TVs, Novaled is expected to help it with the issue.
Cheil Industries CEO Jong-Woo Park said that with the acquisition the company is able to achieve significant synergies in research and development of OLED material of the next generation, the report added.
--ANI (Posted on 12-08-2013)