Samsung Electronics has bought Bedford-based NewNet Communication Technologies (Canada), Inc., meaning the world’s largest electronics producer by revenue will establish a base in Nova Scotia.
It is the second time in three years that the Bedford operation, which makes advanced messaging systems for cell phone, has changed hands.
The company was originally known as NewPace. In June 2014 its CEO Brent Newsome and Chief Technology Officer Gavin Murphy sold it to NewNet Communications, an Amsterdam-based company owned by Los Angeles private equity firm Skyview Capital. Now NewNet has sold the operation on to Samsung.
Samsung said in a statement it plans to retain the operation in Bedford, which now consists of about 20 people, and to leave the leadership team of Newsome and Murphy in place.
NewNet Canada has developed a suite of rich communications service, or RCS, mobile phone products. These products increase the flexibility that mobile phone companies can offer in texting services on mobile handsets. It means texts can be used for chat, group chat, file transfer, video and voice calling across networks and using any smartphone. The goal is to upgrade the current standards of voice and text messaging offered by mobile carriers.
“This acquisition is a critical milestone not just for Samsung but also for the communications industry,” said Samsung in a statement released Tuesday. “It will accelerate the deployment of RCS-enabled networks, providing consumers with a ubiquitous standards-based messaging and communications platform. The acquisition will also enable Samsung to offer interoperable server solutions for mobile operators that do not already have their own RCS infrastructure.”
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NewPace had been one of the more advanced tech companies in the region when it was purchased by NewNet in June 2014. The company had said at the time its revenue was well into seven figures in 2013, and that it had its technology was being used by 80 mobile phone operators around the world.
Newsome and Murphy chose to sell to NewNet because they needed either more capital or to be part of a larger organization to continue to grow. The price of neither the 2014 purchase nor the more recent deal was disclosed.
The eight-year-old Bedford operation will now become a wholly-owned subsidiary of Samsung Electronics Canada Inc. The ultimate Samsung parent is South Korea’s largest conglomerate, and the Samsung Electronics unit was the largest electronics company in the world by revenues in 2014, according to Wikipedia.
Samsung said the acquisition reinforces its commitment to RCS as mobile networks transform to internet protocol-based networks and services. By driving significant value for operators and consumers, the mobile communications market can benefit from the broader communications ecosystem, said the South Korean company.
“Consumers will benefit from an advanced messaging experience with features such as enhanced calling, group chat, and the ability to easily share and transfer large files including multimedia and high-resolution photos,” said the Samsung statement. “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.”