Samsung announces to acquire Harman International Industries. Samsung on 14th Nov, 2016 announced that they would buy US auto parts maker Harman International Industries for $8 billion. Samsung Electronics produces a wide range of electronics from semiconductors to smartphones and home appliances.
Samsung Announces to Acquire Harman International Industries
Harman International Industries are front-runners in connecting cars and auto infotainment systems. Samsung took this step to produce connected cars by entering the growing market for automotive technology.
This deal is the biggest in history which will provide another chance to Samsung to overcome financial crisis due to exploding Galaxy Note 7 and to regain their reputation.
Board members of Samsung – the technology titans –the world’s largest producer of smartphones — officialized a cash deal for $112 a share.
Samsung said in a statement:
“The deal will give the South Korean giant a “significant presence” in the global market for online-connected auto parts”
Samsung explained that this new deal will give their company a chance to combine Harman expertise and skills in high-tech auto parts and their mobile and semiconductor technologies.
Samsung vice chairman Kwon Oh-Hyun said in a statement:
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
Harman is already working for global car makers including General Motors and Fiat Chrysler by producing high-end audio systems and other internet-enabled entertainment features.
Harman immediately establishes a strong foundation for Samsung to grow our automotive platform
Samsung vice chairman said in statement.
Samsung told that a new automotive electronics team was established last year which will work in collaboration with Harman.
Samsung recollected millions of Note 7s after it appeared that they were prone to overheating and exploding. They discontinued handset when it was discovered that the gadgets replaced were also exploding. The search for a new growth engine would also likely be aimed at giving the company a boost.