Samsung is buying Harman for $8B to further its connected car push

Samsung is buying Harman for $8B to further its connected car push

Posted 10 minutes ago by Jon Russell (@jonrussell)
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Samsung is increasing its focus on the connected car after the Korean firm announced plans to buy auto product maker Harman in an all cash deal worth $8 billion.

The news is a big deal for Samsung’s automotive ambitions since around 65 percent of Harman’s sales — which totaled $7 billion over the last year — were for car-related products. Samsung said in an announcement today that Harman products, which included connected car devices and audio systems, are installed in an estimated 30 million vehicles worldwide.

“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,” Oh-Hyun Kwon, Vice Chairman and Chief Executive Officer of Samsung Electronics, said in a statement.

Terms of the deal will see Samsung pay $112.00 per share. That’s a healthy premium on its current share price of $87.65, and it gives the deal a total value of approximately $8 billion.

With Apple reportedly developing an electic vehicle (or not), it is perhaps not surprising that Samsung has made ground on automotive itself in 2016.

This summer, it invested $450 million into China-based electric car maker BYD, which includes Warren Buffett’s Berkshire Hathaway Inc. among its investor base. Other reports suggested that the Korean giant was also eyeing up a bid for Magneti Marelli, a manufacturing subsidiary of Fiat Chrysler.

More to follow

Featured Image: TK Kurikawa/Shutterstock
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