[THE INVESTOR] Samsung Electronics said on Nov. 14 that it has acquired US audio system maker Harman International Industries for US$8 billion as part of its recent connected car push.
The Korean tech giant purchased Harman’s share for US$112 apiece, making the latest deal the largest acquisition of a foreign firm by a Korean company.
Samsung said that the transaction will immediately give Samsung a significant presence in the surging market for connected solution technologies, especially on automotive electronics.
The firm predicted the automotive electronics sector will grow to more than US$100 billion by 2025.
“HARMAN perfectly complements Samsung in terms of technologies, products and solutions, and joining forces is a natural extension of the automotive strategy we have been pursuing for some time,” said Kwon Oh-hyun, one of Samsung’s three co-CEOs who oversees the company’s component business division.
Pinning high hopes on the recent deal with Samsung, Harman Chairman Dinesh Paliwal said: “The compelling all-cash transaction will deliver significant and immediate value to our shareholders and provide new opportunities for our employees as part of a larger, more diversified company.”
Alongside the automotive adoption, Samsung also plans to apply Harman’s audio tech to its Internet of Things strategy that aims to connect all appliances via the internet.
