Today Samsung has announced that they will be acquiring Harman in a deal for $112.00 per share in cash, with a total equity value of around $8 billion.
Harman creates a number of connected solutions for cars, with more than 30 million vehicles equipped with its connected car and audio systems, Harman works with a number of the world’s top car manufacturers including, NMW, Land Rover, Ferrari, Porsche, Lamborgini, Bently, Audi and more.
Samsung explained the acquisition with the following statement:
Samsung Electronics and Harman International Industries, Incorporated today announced that they have entered into a definitive agreement under which Samsung will acquire HARMAN for $112.00 per share in cash, or total equity value of approximately $8.0 billion. Upon closing, the transaction will immediately give Samsung a significant presence in the large and rapidly growing market for connected technologies, particularly automotive electronics, which has been a strategic priority for Samsung, and is expected to grow to more than $100 billion by 2025¹ . HARMAN is the market leader in connected car solutions, with more than 30 million vehicles currently equipped with its connected car and audio systems, including embedded infotainment, telematics, connected safety and security. Approximately 65% of HARMAN’s $7.0 billion of reported sales during the 12 months ended September 30, 2016 are automotive-related, and its order backlog for this market at June 30, 2016 was approximately $24 billion.
It’s an interesting deal and could see Samsung move into the connected car market, with a possible inclusion of tech for the car that links with the Galaxy range of devices, of course, they also run the brands JBL and Harman/Kardon, so we could also see integrations of Harman/Kardon’s or JBL’s audio technology in various Samsung devices.
However, we don’t yet know what Samsung’s plans are for the company.
You can read more about the acquisition at the source link below.