Samsung Electronics said Monday it would buy US auto parts maker Harman International Industries for $8 billion (roughly Rs. 54,107 crores) in a bid to enter the growing market for automotive technology to produce “connected” cars.
Board members of Samsung – the world’s largest producer of smartphones – had approved the all-cash acquisition of the Connecticut-based firm for $112 a share, Samsung said in a statement.
The deal – the largest by Samsung in terms of value – would give the South Korean giant a “significant presence” in the global market for online-connected auto parts including telematics, the firm said.
“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,” Samsung vice chairman Kwon Oh-Hyun said in a statement.
“Harman immediately establishes a strong foundation for Samsung to grow our automotive platform.”
Harman produces high-end audio systems and other internet-enabled entertainment features for global carmakers including General Motors and Fiat Chrysler.