South Korean electronics giant, Samsung said it will acquire U.S. car and audio systems supplier Harman International for $8.0 billion to give the company a significant presence in the large and rapidly growing market for connected technologies, particularly automotive electronics.
Based in Stamford, Connecticut, Harman is best known for making car audio systems under brand names popular with audiophiles such as Harman/Kardon and JBL. It also offers connected car solutions, with more than 30 million vehicles currently equipped with its connected car and audio systems, including embedded infotainment, telematics, connected safety and security, according to Samsung.
Earlier this year, Samsung launched Samsung Connect Auto, which offers in-car services, such as Wi-Fi to keep drivers online, as well as real-time alerts to improve driving habits and enhance fuel efficiency.
Dinesh Paliwal, HARMAN Chairman, President and CEO
This 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.
Young Sohn, President and Chief Strategy Officer of Samsung Electronics
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.
