Is Samsung on track for large-scale M&A deals?

Samsung Electronics logo (Yonhap)

Samsung Electronics is seen ramping up its merger and acquisition efforts to secure a stronger footing in the rising technology sectors, including artificial intelligence.

The South Korean tech giant, leading in mobile devices and semiconductors, announced Thursday its acquisition of Oxford Semantic Technologies, a UK-based startup specializing in knowledge graph technology. It is the first time the company makes such an investment via Samsung Research, its research and development hub.

The deal upped market expectation for Samsung's next move in the global M&A scene as it has been largely keeping a low-profile since it acquired the American automotive audio maker Harman in an $8 billion deal in 2017.

According to Samsung, the startup with cutting-edge technological capabilities in knowledge representation and semantic reasoning, and an AI-centric engine RDFox, will support data analysis for its AI technology on smartphones and mobile devices.

Samsung has not yet revealed the financial details, but its latest investments are commanding industry attention on its next M&A push.

In May, Samsung Medison, the medical equipment affiliate of Samsung Electronics, acquired the French AI ultrasound startup Sonio, to introduce AI-enhanced workflows and accelerate innovation in patient outcomes and quality of prenatal care.

Samsung also joined in a $277 million Series D investment for Element Bioscience, a US-based DNA analysis equipment company earlier this month. The US firm is a life science company that developed the disruptive DNA sequencing and multi-omics technology that boasts the industry's "top level" accuracy for research markets, Samsung said.

Top executives at Samsung Electronics have continued to raise the prospects for a mega deal, renewing the commitment to strengthen investment in next-generation technologies.

“I hope to see the company’s plan for a mega M&A deal to maintain its leadership, this year,” Samsung Electronics Vice Chairman Han Jong-hee said in a press conference held on the sidelines of the CES, a global tech show, in January.

Han also said in April that he is looking into diverse tech fields, including home appliances, TV, network and medical equipment for possible M&A.

In April, Samsung Electronics brought back its key man for M&A, Ahn Joong-hyun, the president and head of the Future Industry Research Division at Samsung Research, to its Management Support Division.

Ahn had moved to the group’s think tank in 2022 after being promoted. He has played a key role in the company’s major M&A deals, including the Harman acquisition, since 2004.

Rainbow Robotics is largely deemed a likely candidate for Samsung's M&A push, as the tech giant already has a 14.83 percent share in the robotics startup.

Samsung is also rumored to be considering acquiring a portion of the automotive electronics business from Continental, a German auto parts maker.

By Jo He-rim(herim@heraldcorp.com)