Tuesday, September 17, 2019
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Samsung buys audio giant Harman Kardon for $8 billion in largest acquisition ever

Photo by EmilySalazar
Samsung has agreed to acquire Harman International Industries, an auto parts supplier best known by consumers for its Harman Kardon audio division. The $8 billion, all-cash deal is the largest in Samsung’s history, and an unusual move for a company that normally develops tech in-house. It instantly makes Samsung a much bigger player in the connected and autonomous vehicle industry dominated by Google, Apple and automakers like Tesla, GM and Volvo.
Despite its explosive growth, Samsung has mostly preferred to buy smaller startups or develop its own technology. That changed last November when the company announced it would purchase Harman International Industries, Incorporated for about $8 billion, and tonight it confirmed the deal is complete.

Harman is the parent company of not only the Harman Kardon brand, but also Infinity, JBL, Lexicon and Mark Levinson.

Samsung paid a 28 percent premium over Harman’s current share price, but Harman has a projected order backlog of $24 billion, according to the WSJ. While the California-based firm is known for audio products like Harman Kardon, JBL and dbx, about two-thirds of its sales come from the auto industry. The company builds infotainment, connected safety, security and telematics devices and services used in over 30 million vehicles built by BMW, Toyota, Volkswagen and other automakers.

Source: EnGadget

Photo by EmilySalazar