Samsung’s $8 Billion Acquisition Of Harman Represents Huge Shift To Connected Cars
Samsung is betting big on the future of the "connected car" -- look no further than its intentions to acquire Harman International Industries for $8 billion or $112 per share. Haram is a “market leader” in connected car solutions.
Oh-Hyun Kwon, Vice Chairman and Chief Executive Officer of Samsung Electronics, remarked, “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.”
Dinesh Paliwal, Harman Chairman, President and CEO, is equally optimistic. He stated, “This transaction will bring Harman and Samsung’s complementary strengths together to accelerate innovation in this space. More broadly, this investment underscores the strength of Harman's employees, as well as our success and leadership across our markets.”
Harman will continue to function as a separate subsidiary and be led by its current management team. The subsidiary will collaborate with Samsung’s Automotive Electronics Business Team, which was established in December 2015. The deal is expected to close in mid-2017.
The two companies expect that Harman's connected car technologies, such as infotainment, cybersecurity, over-the-air updates and telematics, will complement Samsung’s “significant expertise and experience in connectivity technologies, including 5G, UX/UI, display technology and security solutions”. Samsung will gain access as well to Harman's audio systems, including JBL, Harman Kardon, Mark Levinson, AKG, Lexicon, Infinity, and Revel. Samsung is also looking forward to using Harman's technologies at stadiums and concert facilities by taking advantage of its 8,000 software designers and engineers who are working on loT developments.
Harman currently has 30 million vehicles equipped with its connected car and audio systems. Sixty-percent of Harman's $7.0 billion of reported sales were auto-related.
Oh-Hyun Kwon, Vice Chairman and Chief Executive Officer of Samsung Electronics, remarked, “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.”
Dinesh Paliwal, Harman Chairman, President and CEO, is equally optimistic. He stated, “This transaction will bring Harman and Samsung’s complementary strengths together to accelerate innovation in this space. More broadly, this investment underscores the strength of Harman's employees, as well as our success and leadership across our markets.”
Harman will continue to function as a separate subsidiary and be led by its current management team. The subsidiary will collaborate with Samsung’s Automotive Electronics Business Team, which was established in December 2015. The deal is expected to close in mid-2017.
The two companies expect that Harman's connected car technologies, such as infotainment, cybersecurity, over-the-air updates and telematics, will complement Samsung’s “significant expertise and experience in connectivity technologies, including 5G, UX/UI, display technology and security solutions”. Samsung will gain access as well to Harman's audio systems, including JBL, Harman Kardon, Mark Levinson, AKG, Lexicon, Infinity, and Revel. Samsung is also looking forward to using Harman's technologies at stadiums and concert facilities by taking advantage of its 8,000 software designers and engineers who are working on loT developments.
Harman currently has 30 million vehicles equipped with its connected car and audio systems. Sixty-percent of Harman's $7.0 billion of reported sales were auto-related.
