Samsung to acquire Harman in all cash deal worth $8 billion

Samsung Electronics Co. has officially announced that it will be acquiring US-based Harman International Industries in an all cash deal that is being reported to be worth $8 billion. Through the said deal, Samsung is planning to expand its presence in the connected technologies and automotive electronics domain. All IT and audio-related subsidiaries of Harman International are also a part of this acquisition.

Samsung claims that this will be its biggest overseas acquisition yet. The South-Korean electronics giant's entry into the automotive space is being seen as an answer to its chief rival - Apple, who has been keen on entering the in-car technology space through autonomous tech and connectivity platforms.

Harman is currently one of the most prominent players in the in-car entertainment business. Harman International reported an annual revenue of $7 billion during the last 12 months, 65% of which came from its automotive-related business verticals. The subsidiary list of the group includes prominent brands like JBL, Infinity, Bang & Olufsen and Harman Kardon. The company has recently partnered with automakers like Fiat Chrysler and General Motors for supplying in car entertainment systems. It reported an order backlog worth $24 billion as on June 30, 2016. The conglomerate is expected to double its revenue in the next five years.

Samsung claims that its expertise in user interface, displays, connected mobility and its global distribution channels will give an added boost to Harman's widespread automotive business. Both companies will thus be aiming at increased market penetration across important end markets through the aforementioned acquisition.