Samsung has come a long way with the products it develops, industries it enhances and customers it serves. The company reported 2017 total revenue of $212 billion.
Founded in 1969, Samsung would have been unable to achieve the status of one of the largest companies in the world without acquiring other businesses and operating as a parent company. Samsung’s success is attributable to all of its business divisions, which include electronics, refrigerators, medical devices, mobile communications and information technology.
It would be impossible to operate such a large-scale company without key subsidiaries. The following companies are owned by Samsung and play a key part in their future growth.
Harman International Industries
Harman International Industries is engaged in the development, manufacturing and marketing of audio products and electronic systems. It was acquired by Samsung in 2016 for $8 billion. Its products are marketed under brand names such as JBL, Infinity, Mark Levinson, and Harman/Kardon.
In June 2016, Samsung bought AdGear, a leading digital advertising technology company that provides software and services to multiple channels in the advertising and marketing industry. AdGear offers a digital signal processor called AdGear Trader that manages data and acts as an advertisement server. AdGear is focused on enabling brands to connect with Samsung TV audiences across all digital devices.
The Samsung Global Innovation Center led the acquisition, and the new subsidiary operates as an independent entity wholly owned by Samsung Electronics Canada Inc. Approximately $50 million was exchanged in the deal.
Samsung also acquired Joyent, a global public and private provider of cloud services, back in June 2016. With the acquisition, Samsung now has its own platform to support cloud-based software. Before the deal, Joyent had acquired $131 million from private investors.
Joyent, founded in 2005, has two main products: a Container as a Service (CaaS) management product called Triton and Node.js which it turned into the standard for web, mobile and IoT architectures.
In order to rival Apple Pay by Apple (AAPL), Samsung acquired LoopPay. This Massachusetts-based start-up provides the foundation for Samsung Pay, the mobile payment system. LoopPay invented a payment system in which shoppers could pay for items in-store by tapping a piece of hardware onto an electronic payment receiving system. This technology has been incorporated into Samsung’s mobile devices.
LoopPay had raised $10 million prior to the acquisition via venture capital financing, and received approximately $250 million in the deal with Samsung.
Samsung demonstrated its intention for growth into other industries when it acquired Nexus, a U.S. health care equipment maker. The amount of the deal was not disclosed to the public, but the move continued Samsung’s shift into the health care industry.
This move signals a willingness to purchase companies overseas from the Korea-based Samsung. Nexus specializes in cardiac-testing products and was bought in 2011.
Samsung paid $347 million in 2013 to acquire Novaled. The purchase boosted Samsung’s next-generation displays, as Novaled specializes in the research and development of organic materials and technologies for superior OLED displays.
The technologies developed by Novaled are implemented in both television screens and mobile devices. The company is based in Germany.
California-based Proximal Data is a 2014 acquisition of Samsung. It specializes in server-side caching software. The main purpose of its operations is to optimize storage performance by efficiently storing frequently used data. The startup had raised $8 million of funding prior to the acquisition.
For less than $100 million, Samsung purchased Simpress, a printing solutions firm, in early 2015. The motivation behind the deal was to bolster Samsung’s business-to-business operations as well as stabilize earnings. Simpress, based in Brazil, provides a stronger foothold for Samsung in Latin America as well as opportunities in business process outsourcing.
During the summer of 2014, Samsung made a move to strengthen its position as a leading provider of a smart, synced home center. For $200 million, it purchased SmartThings, a leading provider in connecting technologies. Samsung has developed kits to pair with the SmartThings Hub and the product can sync to hundreds of devices.
Prismview, formerly known as Young Electric Sign Co. is a 2015 acquisition of Samsung that targets the manufacturing of light-emitting diode displays. The Utah-based company’s specialties are digital billboards and message signs. Samsung utilizes the company through the application of liquid crystal display screens in televisions, smartphones and tablets. The dollar amount of the sale was not disclosed to the public.