Samsung is on the lookout for acquisition opportunities as the tech giant looks to boost its software and services product offerings.
The South Korean company has been proactive in acquiring companies in recent years with acquisitions of the likes of Viv Labs and LoopPay, two companies that boosted its artificial intelligence and mobile payments services respectively.
Deals like this have highlighted a move away from Samsung’s traditional model of relying on its own talent towards one of capital expenditure.
Confirmation of this strategy came from Peter Koo, SVP for Samsung’s mobile division who said at an investor event in Hong Kong that, “We are going to be bullish on finding companies that fit our strategy,” reported Reuters.
Competition between Samsung and Apple and the emergence of the likes of Huawei as a genuine challenger has seen the market leaders look to diversify their portfolios.
Earlier this year Samsung acquired Harman International Industries for $8bn, a move designed to help it to force its way into the automotive components industry.
Apple has made a number of acquisitions designed to improve its existing product line, with Beddit, Lattice Data, Workflow, and more.
The iPhone manufacturer has also been linked with a massive acquisition of Disney. An analyst at Citgroup recently suggested that Apple could have around $220bn to spend, with Netflix, Walt Disney, Tesla, Activision Blixxard, Electronic Arts, Take Two Software, and Hulu, linked as being the most likely options.
Citigroup analyst Jim Suva said in a note to clients: “Since one of the new administration’s top priorities is to allow US companies to repatriate overseas cash at a lower tax rate, Apple may have a more acute need to put this cash to use.”
The reason for the potential shopping spree is because Apple has over 90% of its cash overseas and a tax blueprint from President Trump has proposed that a multinational can bring in its profits from overseas at a tax rate of 10%, rather than the standard 35%.