Samsung Electronics (SSNLF.US) recently signed an agreement to acquire FläktGroup Holding GmbH for 1.5 billion euros (1.7 billion US dollars), which is the company's largest overseas M&A transaction in eight years.

The South Korean tech giant said in the announcement that it has reached an equity acquisition agreement with Triton Investments Advisers LLP to acquire 100% of the German company.

The acquisition will significantly enhance Samsung's competitiveness in the HVAC market to meet challenges from rivals such as LG Electronics. As the boom in artificial intelligence (AI) has driven a surge in demand for data center cooling, the market is entering a period of rapid growth.

The deal reportedly marks a restart of Samsung's aggressive M&A strategy aimed at reviving its sluggish businesses in areas including chipmaking, home appliances and smartphones. If the transaction is completed smoothly, it will become Samsung's most important M&A case since it acquired Harman International for US$8 billion in 2017.