Dresden, Germany and Seoul, South Korea--OLED technologies and materials company Novaled and Samsung Cheil Industries, a leading electronic materials company in the display industry, announced that Cheil Industries will acquire a majority stake in Novaled in a transaction valuing Novaled at $347 million dollars. Samsung Cheil Industries signed a binding agreement to acquire a majority stake of approximately 50% in Novaled. Samsung Electronics will acquire approximately 40%, the remaining stake of approximately 10% in Novaled is currently held by Samsung Venture Investment which will maintain its current shareholding.
Cheil Industries' CEO Jong-Woo Park said, "Leadership in future display market will be determined by technological capacity," and, "this acquisition is expected to generate significant synergy in new-generation OLED materials R&D and will play a critical role in enhancing Cheil Industries' market position as a global leader in electronic materials."
Novaled's selling shareholders are a group of financial investors and individuals, including eCAPITAL entrepreneurial Partners AG, Zweite TechnoStart Ventures Fonds GmbH & Co. KG, Omnes Capital, TechFund Europe Management S.A.S., Innovation Capital S.A.S., KfW, Dresden Fonds GmbH and TUDAG TU Dresden AG, amongst others. "The transaction with Cheil Industries and Samsung Electronics completes a partnership that started in 2011 with Samsung Venture Investment becoming a strategic investor in Novaled. At the end, the dual track process with a parallel preparation of a listing on NASDAQ led not only to the best solution for Novaled but also to one of the most successful venture capital investments in Germany," said Paul-Josef Patt, CEO of eCAPITAL and lead investor since the beginning of 2009. "This marks the start of a new era for Novaled's development both in the display and lighting markets. As 2005 lead investor in Novaled, and having contributed to the company's key strategic decisions, we welcome the merger with Cheil Industries," said Michel de Lempdes, Partner at Omnes Capital.
As part of the transaction, Cheil Industries and Samsung Electronics will also acquire the shares of founding partners of Novaled. "This transaction is an important milestone in the development of Novaled: the proof of the capability of the Doping Technology to advance the performance of OLED devices. With this target in mind, we founded Novaled back in 2001," says Jan Blochwitz-Nimoth.
Novaled specializes in high-efficiency, long-lifetime OLED structures. Through the combination of organic conductivity doping technology, proprietary materials, and OLED stack development expertise, Novaled offers OLED display and lighting manufacturers customized solutions to optimize the performance, power efficiency, stability, and lifetime of their products while decreasing their manufacturing complexity and cost. In 2012, Novaled generated revenues of $35 million dollars.
Novaled has developed long-term partnerships with major OLED players worldwide; its strong IP position in OLED technology is based on more than 500 patents granted or pending. The company was founded in 2001 through a spin-off of the Dresden University of Technology and the Fraunhofer Institute of Dresden.
Through the acquisition of Novaled, Cheil Industries says it will be able to lead the change in the OLED market by leveraging Novaled’s technology and patents, and successfully positioning itself for a new phase of growth as global market leader in display materials. According to DisplaySearch, the global OLED market is expected to grow rapidly from US$6.8 billion in 2012 to US$20 billion by 2017. Cheil Industries plans to grow Novaled's existing R&D activities and concentrate a main part of its OLED R&D strategy in Dresden.
"With the support of its financial investors and public stakeholders Novaled has developed to an OLED world leader position," says Gildas Sorin, CEO of Novaled. "We are very pleased to welcome Cheil Industries and Samsung Electronics as our new owners. Cheil Industries and Novaled are complementary—the alliance will help both parties to contribute and fully leverage its strengths for the benefit of the whole OLED industry."
The transaction is subject to approval from competition and other relevant authorities.