Continuing its push to seek acquisitions as part of its growth strategy, Samsung Electronics Co. said it acquired US health-care equipment maker Nexus for an undisclosed amount.
The latest acquisition, which came nearly a year after Samsung bought a South Korean medical-equipment maker, will help the world’s biggest technology company by revenue push into the health-care sector, an area where the electronics giant is investing heavily.
It also underscores Samsung’s strategy to shift from organic growth to buy companies overseas in new areas in its bid to compete with the likes of General ElectricCo. Samsung is the world’s biggest maker of semiconductors, liquid crystal displays and the world’s second-largest mobile handset maker by shipments behind Nokia Corp.
Nexus, a division of ITC Nexus Holding Company, is a provider of cardiac-testing systems, which helps in the monitoring of various cardiovascular diseases. The private company, formed in 2009, will continue to operate from its San Diego headquarters even after Samsung’s takeover, the two companies said in a joint statement.
“This partnership will play a vital role in helping Samsung to position itself as a global leader in health-care technology,” said Yong-chu Bang, Vice President of Samsung Electronics’ health and medical equipment business.
Nexus said it expects the divestiture to give it support to continue to develop cardiac testing products.
In December, Samsung acquired a 43.5% stake in Medison Co., a South Korean medical equipment maker for 331.4 billion won ($292.2 million). Samsung in December also acquired Dutch display technology firm Liquavista BV for an undisclosed sum to expand into next-generation displays for electronic book readers and mobile devices.
In 2008, Samsung attempted to buy U.S. flash memory card maker SanDisk Corp. for $5.85 billion, but withdrew its bid due to pricing. That same year, Samsung acquired the intellectual property assets of U.S.-based Clairvoyante Inc., an IP licensing company responsible for the development of subpixel rendering display technology.
As part of its long-term plans to develop new engines for growth, Samsung announced last year that it aims to invest 1.2 trillion won through 2020 in the health-care sector.
The acquisition of Nexus is expected to be completed in the fourth quarter.
Samsung said early this year that it plans to spend a record 43.1 trillion won for capital expenditures this year.