Samsung Will Acquire Harman To Enter The Connected Auto Market

The deal worth $ 8 billion has been approved by the boards of directors of both companies.

Chandrakant 'CK' Isi
15:11 15th Nov, 2016

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Korean technology giant Samsung is planning to buy Harman International Industries. The deal is said to be worth around $8 billion. Harman has over 30 million vehicles currently equipped with its connected car and audio systems. Hence, the move will help Samsung enter the currently glowing connected car solutions market. Last year Harman sold over billions of dollars of products in the connected car section. Moreover, its relationships with automakers will also come in handy for th Koreans.

Samsung promises to enhance Harman's product line-up with its top-notch screen technologies, UI/UX expertise, and security solutions. The American company has brands such as JBL, Harman Kardon, Mark Levinson, AKG, Lexicon, Infinity, and Revel under its umbrella. The company also licenses Bowers & Wilkins and Bang & Olufsen brands for automotive. The acquisition will also aid the Korean brand to deliver large-scale audio and visual solutions at concert halls and stadiums. Samsung will gain access to Harman's 8,000 software designers and engineers with expertise in IoT (Internet of Things).

Once the deal is closed, the Harman will operate as a standalone subsidiary. Its current CEO Dinesh Paliwal, will continue to lead the company. The agreement has been approved by the boards of directors of both companies. However, Samsung will have to wait for regulatory approvals on the deal.