Samsung is all set to enter the connected cars scene with their latest strategic investment. The Korean conglomerate will acquire US-based Harman International Industries for a whopping USD 8 Billion. By far, this all cash deal will be Samsung largest overseas acquisition till date. Harman is responsible for supplying connected car solutions to automakers. Reportedly, more than 30 million vehicles currently equipped with its connected car and audio systems, including embedded infotainment, telematics, connected safety and security. Even after the acquisition, Harman will operate as a standalone Samsung subsidiary, and continue to be led by Dinesh Paliwal and the company’s current management team.
Upon closing the deal, which will take place by mid 2017, the Samsung plans to deliver growth opportunities and benefits to customers by using fusing their technology with that of Harman’s. As for the plans in the automotive sector, Samsung will use their expertise in connectivity technologies, display technology and security solutions to enhance Harman’s automotive and connected services businesses providing benefits as automakers speed the adoption of next-generation connected cars.
With an army of brands including JBL, Harman Kardon, Mark Levinson, AKG, Lexicon, Infinity, and Revel, Bowers & Wilkins and Bang & Olufsen Harman will pump up the audio and virtual experience of Samsung’s mobile, display, virtual reality and wearable products. The acquisition will provide the Korean electronic brand an access to Harman’s 8,000 software designers and engineers who are exploring the potential of the IoT market. For business-to-business platform the companyis together will work to deliver integrated, large-scale audio and visual professional solutions at stadiums, concert facilities and other performance centers.
On the acquisition, Dinesh Paliwal, Harman Chairman, President and CEO, stated, “This 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. Samsung is an ideal partner for Harmanand this transaction will provide tremendous benefits to our automotive customers and consumers around the world. Combining Samsung’s strengths in leading-edge displays, connectivity and processing solutions with Harman’s technology leadership and long-standing customer relationships will enable OEMs to provide new offerings for their customers.
He further added,”Partnerships and scale are essential to winning over the long term in automotive as demand for robust connected car and autonomous driving solutions increases at a rapid pace. This transaction will bring HARMAN and Samsung’s complementary strengths together to accelerate innovation in this space. More broadly, this investment underscores the strength of HARMAN’s employees, as well as our success and leadership across our markets. We look forward to working together with Samsung to elevate experiences for consumers worldwide.”
