Samsung has struck a deal to purchase Harman International Industries in a deal worth about $8 billion.
The electronics company will acquire Harman for $112 per share in cash and gives Samsung a presence in the rapidly-growing market for connected technologies, particularly those in the automotive industry.
Over 30 million vehicles are currently equipped with Harman connected car and audio systems and the brand’s automotive systems are so in demand that in June, it had a $24 billion order backlog.
Samsung’s say the auto industry will benefit greatly from the purchase with future Harman products expected to utilize Samsung’s display technologies, security solutions and 5G network. Samsung devices will also benefit from Harman’s expertise in the audio industry where it owns companies such as JBL, Harman Kardon, Revel and licenses Bowers & Wilkins and Bang & Olufsen in the automotive world.
Discussing the deal, president and chief strategy officer of Samsung Electronics, Young Sohn, said “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.
“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.”
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