November 24, 2024

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[THE INVESTOR] Samsung Electronics said on Nov. 14 that it has acquired US audio system maker Harman International Industries for US$8 billion as part of its recent connected car push.

The Korean tech giant purchased Harman’s share for US$112 apiece, making the latest deal the largest acquisition of a foreign firm by a Korean company. 

Samsung said that the transaction will immediately give Samsung a significant presence in the surging market for connected solution technologies, especially on automotive electronics.

The firm predicted the automotive electronics sector will grow to more than US$100 billion by 2025.

“HARMAN perfectly complements Samsung in terms of technologies, products and solutions, and joining forces is a natural extension of the automotive strategy we have been pursuing for some time,” said Kwon Oh-hyun, one of Samsung’s three co-CEOs who oversees the company’s component business division.

Pinning high hopes on the recent deal with Samsung, Harman Chairman Dinesh Paliwal said: “The 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.”

Alongside the automotive adoption, Samsung also plans to apply Harman’s audio tech to its Internet of Things strategy that aims to connect all appliances via the internet.

By Kim Young-won (wone0102@heraldcorp.com)