Samsung Acquires Advanced Messaging Infrastructure With Buy Of NewNet Canada

Samsung Electronics announced its second acquisition of the week 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.

[Related: Samsung Revs Up Efforts In Connected Car Space With $8B Deal For Harman]

id
unit-1659132512259
type
Sponsored post

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 news release.

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 said.

NewNet Canada, which Samsung is buying from Lombard, Ill.-based NewNet Communication Technologies, will continue to operate independently, Samsung said.

NewNet Canada had operated under the name NewPace before it was acquired by NewNet Communication Technologies.

The acquisition follows Monday's announcement that Samsung reached a deal to acquire connected car technology developer Harman for $8 billion.

It also follows Samsung's back-to-back flubs around the Galaxy Note7, which was prone to catching fire both in its original and replacement versions. Samsung responded by halting production of the Galaxy Note7 and issuing a recall of all original and replacement Galaxy Note7 devices.

The incidents have cost Samsung at least $5 billion in direct losses and are expected to further hurt the company by delivering a hit to its reputation in the market.