Samsung Electronics buys network analysis firm Zhilabs in 5G push

Alfred Osborne
October 20, 2018

But the list of Zhilabs customers is definitely impressive, including Hewlett Packard Enterprise, as well as several major wireless service providers, like Vodafone, O2, Telefonica, and Optus.

Samsung Electronics Co. said Wednesday it has purchased full stakes in Spain-based network analysis firm Zhilabs to bolster its competitiveness in the fifth-generation network industry.

Samsung disclosed that it's acquired Barcelona-based Zhilabs, a network analytics startup, and while Samsung hasn't shared terms of the deal, it is saying the objective is pretty straightforward.

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The group has chose to invest nearly $22.23 billion in up and coming technologies such as artificial intelligence, 5G, auto components components, and biopharmaceuticals. The acquisition will help Samsung to expand its 5G offerings in automation and network analytics. The South Korean tech giant said Zhilabs will be operated independently by existing management and forge close ties with Samsung that can create new opportunities for all sides.

Launched in 2008, Zhilabs analyzes the condition, performance and data traffic of cellular networks for close to 50 different telecom companies. Samsung, of course, has already teamed up with large carriers to start powering commercial 5G networks.

In a statement, Youngky Kim, Samsung Electronic's president and head of networks business, said "5G will enable unprecedented services attributed to the generation of exponential data traffic, for which automated and intelligent network analytics tools are vital". ZTE lost its fourth position in the global telecom network market in the wake of the US-imposed sanctions recently. The acquisition aims to bolster Samsung's competitiveness in the fifth-generation network industry, one of Samsung Group's four key growth drivers for the future alongside AI, auto electronics and biologics.

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