In a bid to accelerate its grown in automotive and connected technologies, Samsung Electronics announced today that it will be acquiring HARMAN for approximately $8 billion in cash. The acquisition will give Samsung a major presence in automotive electronics and music system market.
If the acquisition goes through, it will be Samsung’s largest ever acquisition in its history. Harman owns a number of sub-brand including the likes of JBL, AKG, and Harman Kardon. The company has struck major deals with Fiat and General Motos for supplying its connected infotainment system to their cars.
Samsung says in its press release that Harman’s experience in “designing and integrating sophisticated in-vehicle technologies, as well as its long-term relationships with most of the world’s largest automakers, will create significant growth opportunities for the combined business by enabling it to leverage Samsung’s expertise in connected mobility, semiconductors, user experience, displays and its global distribution channels.”
“The vehicle of tomorrow will be transformed by smart technology and connectivity in the same way that simple feature phones have become sophisticated smart devices over the past decade,” added Young Sohn, President and Chief Strategy Officer of Samsung Electronics. “We see substantial long-term growth opportunities in the auto technology market as demand for Samsung’s specialized electronic components and solutions continues to grow. Working together, we are confident that HARMAN can become a new kind of Tier 1 provider to the OEMs by delivering end-to-end solutions across the connected ecosystem.”
Apple and Google have been focusing heavily on the connected car and its autonomous self-driving system, so it’s not surprising to follow suit. The Korean company is one of the largest conglomerates in the world and offers a diverse range of products and services under its brand.