Samsung announces $8bn deal for Harman as it eyes auto market

Samsung has announced that it is buying US audio company Harman in an all-cash deal worth $8 billion. 

The acquisition is Samsung’s largest ever, and places the electronics giant at the vanguard of the automotive industry — which Harman supplies with infotainment technology.

Samsung says its expertise in displays, user interfaces, and semiconductor technology would create “significant growth opportunities” for Harman’s auto-parts business. The latter company, which owns a number of brands including Harman Kardon, AKG, and JBL, is expected to double its revenue over the next five years. The firm recently struck large deals with conglomerates including Fiat Chrysler and General Motors, and as of June 30th this year had a backlog of orders worth approximately $24 billion.

“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 Samsung CEO Oh-Hyun Kwon. “[This acquisition] immediately establishes a strong foundation for Samsung to grow our automotive platform.”