Samsung Gets Connected Car Fever, Will Buy Harman For $8 billion
Samsung Acquires Connected Car Maker Harman in its ‘Biggest Deal Ever’
Samsung gets a whole new range of customers, Harman gets access to 5G and displays.
On Monday, we received more proof (as if it were needed) that the connected car is not going away any time soon. Samsung and Harman announced that the South Korean electronics giant would purchase the latter for $8 billion, or $112 per share. Although Harman is most widely known for its range of in-car audio products, the company is heavily focused on connected car technology, including a platform for rolling out over-the-air software updates to connected vehicles.
“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 chief executive officer of Samsung Electronics.
“Partnerships and scale are essential to winning over the long term in automotive as demand for robust connected car and autonomous driving solutions increases at a rapid pace,” said Dinesh Paliwal, HARMAN chairman, president, and CEO.
The deal will provide Samsung with a massive customer base in the automotive industry, and it means that Harman has access to Samsung’s display technology, among other things. The new partnership suggests we might start seeing much higher resolution displays showing up in new vehicles. Samsung’s experience with connectivity solutions—like the forthcoming 5G wireless communication standard—will presumably be of great value to Harman, which will operate as a standalone subsidiary of Samsung.