Samsung Electronics has purchased Barcelona-based network data analysis firm Zhilabs, as the South Korean giant gears up to launch products for connected devices and 5G mobile services, Reuters reported.
Samsung did not disclose the value of the deal, which marks the first announced acquisition in new technologies.

Celcom Axiata, Telenor, Vodafone, Telefonica, O2, TIM, MTel, Optus, Monaco Telecom, Telekom Srbija, Jazztel, Maxis, among others, are some of the customers of Zhilabs. Joan Raventos, CEO of Zhilabs.

5G telecom operators are expected to use automated and intelligent network analytics tools for handling exponential growth in data traffic.

“The acquisition of Zhilabs will help Samsung meet these demands to assure each subscriber receives the best possible service,” Youngky Kim, president and head of Networks Business at Samsung Electronics, said.

Samsung in August announced its plans to make $22.23 billion investment in artificial intelligence (AI), 5G, electronic components for autos, and biopharmaceuticals.

Samsung is betting that Zhilabs, which uses artificial intelligence to analyze network data, would help its transition to newer 5G gear, as it uses automated network analytics tool for fast data crunching.

Zhilabs — established in 2008 — provides analyses of network condition, performance, and data traffic for about 50 telecom companies. Samsung said Zhilabs will continue to operate independently under its own management.

Samsung said on Wednesday that it will explore and invest in other business opportunities powered by the emerging technologies.

Samsung is the fourth largest telecom network maker after Huawei, Ericsson and Nokia. ZTE lost its fourth position in the global telecom network market in the wake of the US-imposed sanctions recently.

Samsung is already working with SK Telecom for the 5G network roll outs. Samsung has the potential to cash is on the challenges faced by Huawei in the global telecom network market. Huawei is facing ban in some of the 5G markets due to its alleged connection with China government.

Baburajan K