Samsung to buy Harman to boost its presence in connected technology segment

Samsung is buying connected car solution provider Harman International for approximately $8 billion in an all-cash deal to boost its efforts in connected car technology segment.

Though Harman is popularly known as the maker of JBL and Harman Kardon audio systems, the name is big in cars too including contracts with General Motors and Fiat-Chrysler.

Samsung said this deal will immediately give them "a significant presence in the large and rapidly growing market for connected technologies, particularly automotive electronics which has been a strategic priority".

“As a Tier 1 automotive supplier with deep customer relationships, strong brands, leading technology and a recognized portfolio of best-in-class products, HARMAN immediately establishes a strong foundation for Samsung to grow our automotive platform,” said Oh-Hyun Kwon, Vice Chairman and CEO of Samsung Electronics

After the deal close, Harman will operate as a standalone Samsung subsidiary, and continue to be led by the current Chairman, President and CEO Dinesh Paliwal and the existing management team.

Samsung will be paying $112.00 per share in cash, which represents a hefty 28 percent premium based on Harman’s closing stock price of $87.65 on November 11.

“Samsung is an ideal partner for HARMAN and this transaction will provide tremendous benefits to our automotive customers and consumers around the world. This transaction will bring HARMAN and Samsung’s complementary strengths together to accelerate innovation in this space,” said Dinesh Paliwal, HARMAN Chairman, President, and CEO.

Notably, the deal is more than just automotives. South Korean tech major also plans to bring together its own electronics division and expertise with that of Harman for audio — both on the consumer and professional side of business — and connected devices or IoT.