Samsung to buy cloud-computing firm Joyent

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Samsung to buy cloud-computing firm Joyent

Samsung Electronics will acquire U.S.-based Joyent to expand in cloud computing, as the world’s largest smartphone maker looks beyond hardware for revenue growth.

The deal will help Samsung build its cloud infrastructure, the Galaxy maker said in a statement without disclosing a purchase price. The acquisition gives the Suwon-based company its own platform to support mobile, Internet of Things and cloud services.

Samsung has been “actively looking” to acquire software developers, including artificial intelligence, as it tries to overcome flat-lining sales for its devices, Executive Vice President Rhee In-jong said in March. Samsung had more than $60 billion in cash and equivalents at the first quarter’s end.

Vice Chairman Lee Jae-yong is trying to reduce the company’s focus on manufacturing, which had helped create the world’s biggest maker of phones, TVs and memory chips.

Shipments of Samsung’s Galaxy smartphones and other models fell for a second straight year in 2015 as Apple’s iPhones gained traction in the high-end category while models from Huawei and Xiaomi attracted budget buyers. Revenue and net income have fallen two straight years while the stock has posted three consecutive annual declines.

Samsung was involved in 12 deals totaling $456 million last year, according to Bloomberg data. They included the purchase of LoopPay, a company that develops technology for mobile payments and bought SmartThings, which makes mobile applications to control electronics in houses in August 2014.Bloomberg

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