Samsung Acquires Harman In $8 Billion Deal

Samsung acquired Harman in an $8 Billion deal. The acquisition centers on Harman’s market share in car audio and their “connected car” technology, which Samsung wants a piece of to compete with Apple’s Carplay. However, as many of you know, the deal also includes Harman’s extensive pro audio assets as well, including Lexicon, JBL Professional, AKG, Studer and Crown.

Samsung plans to retain Harman’s work force, headquarters and facilities, as well as all of its consumer and professional audio brands. Likewise, the various entities will continue to operate under existing Harman chairman, president and CEO, Dinesh Paliwal, and the current management team.

The acquisition, expected to close in mid-2017, is intended to accelerate Samsung’s move into the connected car marketplace, which it categorizes as a “strategic priority” in the wake of establishing an Automotive Electronics Business Team in December, 2015. Currently, Harman’s technologies are present in more than 30 million vehicles equipped with its connected car and audio systems, including embedded infotainment, telematics, connected safety and security. Roughly 65 percent of Harman’s $7.0 billion of reported sales during the 12 months ended September 30, 2016 are automotive-related; comparatively, the whole of its professional solutions division, which includes the pro audio brands as well as others like video switching/control device manufacturer AMX and lighting company Martin, contributed 14 percent of Harman’s revenues over the last year.

Author: FutureMusic

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