Samsung acquires NewNet Canada
Acquisition to boost vendor’s advanced messaging and content sharing infrastructure
Samsung Electronics has announced the acquisition of NewNet Communication Technologies Canada as the South Korean technology giant looks to find its direction following the disastrous Galaxy Note7 saga.
The deal for messaging technology firm NewNet Communication Technologies Canada brings Samsung a provider of what are known as rich communications services (RCS), which provide infrastructure for messaging and content sharing.
The financial terms for the acquisition of NewNet Canada, based in Halifax, Nova Scotia, were not disclosed.
Samsung said that users of its devices, such as the hugely popular Galaxy S7 and Galaxy S7 Edge smartphones, "will benefit from an advanced messaging experience" as a result of the deal.
New features that could be coming to Samsung devices include group chat, enhanced calling and easier sharing of large files.
"Unlike other messaging apps in the market, users will be able to communicate on any network, with an RCS-enabled device as well as SMS-only devices," Samsung said in a press statement.
The company added that, as a result of the acquisition, it will also be able to offer new server solutions for mobile operators without RCS infrastructure.
"This acquisition is a critical milestone not just for Samsung but also for the communications industry," Samsung added.
NewNet Canada, which Samsung is buying from NewNet Communication Technologies, will continue to operate independently, Samsung stated.
NewNet Canada had operated under the name NewPace before it was acquired by NewNet Communication Technologies.
The acquisition follows an earlier announcement this week that Samsung had reached a deal to acquire connected car technology developer Harman for $8bn.