Samsung has confirmed it has bought Harman International Industries for $8 billion in cash, at a value of $112 per share. Samsung says it's bought Harman to give it a "significant presence in the large and rapidly growing market for connected technologies, particularly automotive electronics".
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Harman has made several acquisitions already in the automotive market, including Bang & Olufsen's and Bowers and Wilkins' in-car audio subsidiaries and is considered, by Samsung at least, to be the market leader in connected car solutions.
Samsung hopes to combine Harman's "experience designing and integrating in-vehicle technologies with Samsung's expertise in connected mobility, semiconductors, user experience, displays and its global distribution channels."
Consumers will eventually be able to benefit from enhanced user experiences "across Samsung's complete portfolio of consumer and professional products and systems".
Oh-Hyun Kwon, vice chairman and CEO of Samsung Electronics said: "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".
Young Sohn, president and chief strategy officer of Samsung Electronics added: "We see substantial long-term growth opportunities in the auto technology market as demand for Samsung's specialised electronic components continues to grow".
Harman also owns established audio brands including JBL, Harman Kardon and AKG, all of which will "enhance the competitiveness of Samsung's mobile, display, virtual reality and wearable products", so expect better sound from future flat-screen TVs.