Samsung Electronics has announced that it is purchasing Harman for approximately $8 billion in cash, or $112.00 per share. This acquisition propels Samsung into the heart of the automotive industry, particularly in regards to connected cars. Harman is a key player in this industry, supplying manufacturers with audio systems, infotainment displays and a number of safety features.
The deal is the largest in Samsung’s history and positions the company to become a powerful player in the automotive industry. Samsung’s specialties include displays, processors, connectivity technology and user-friendly software, all of which complement Harman’s strength in audio and its foothold in the marketplace.
The timeframe is important to note, as Harman recently secured deals with two of America’s automotive giants, Fiat Chrysler and General Motors. By purchasing Harman, Samsung is joining forces with some of the world’s largest automotive manufacturers. This network will allow the company to quickly become an important player in the connected car industry, and it places Samsung in competition with Google, Apple and Microsoft, all of which are working to stake a claim in the market.
Additionally, the deal includes Harman’s distinct brands, such as Harman/Kardon and JBL, as well as the licensing of Bang & Olufsen.
Samsung says that Harman will operate as a standalone Samsung subsidiary, with Dinesh Paliwal remaining in place as CEO of the company. Harman’s work force, headquarters, and facilities will also be retained, with the acquisition opening up more opportunities for advancement through the two companies.