Samsung buys U.S. auto tech firm Harman for $8 billion
The purchase – Samsung’s biggest ever – is designed to help the South Korean electronics company increase its involvement in the growing connected car market.
In a bid to tap into the growing market for connected cars, South Korean multinational electronics company Samsung Electronics is purchasing automotive systems maker Harman, headquartered in Stamford, Conn., for US$8 billion.
The deal is Samsung’s biggest acquisition ever.
Harman provides connected cars and audio systems with safety and entertainment features. More than 30 million cars are equipped with its auto systems. The majority of its $7 billion in annual sales during the year that ended Sept. 30 came from auto-related technologies.
“Upon closing, the transaction will immediately give Samsung a significant presence in the large and rapidly growing market for connected technologies, particularly automotive electronics, which has been a strategic priority for Samsung,” Samsung said in a statement.
In December 2015, Samsung announced the creation of a new business division to focus on auto systems and components for autonomous driving.
The company plans to keep Harman as an independent subsidiary and retain its management team. Samsung’s automotive electronics business team will work closely with Harman’s management, Samsung said.