Samsung’s Harman acquisition to create synergy effect

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Samsung will buy U.S. automobile technology company Harman International.
For more on how the deal’s expected to boost the Korean tech giant’s presence in the fast-growing market of connected car electronics… we turn to Kim Min-ji .
It’s expected to be a breakthrough for Samsung Electronics.
The tech giant is set to buy U.S. automobile tech company Harman International,… for 8 billion U.S. dollars — marking the biggest overseas acquisition by a Korean firm.

Harman — a leading maker of connected car and audio systems — has its products, which provide infotainment, connected safety and security services, installed in more than 30 million vehicles produced by carmakers such as BMW and Volkswagen.
About two-thirds of Harman’s annual 7 billion dollars in sales come from its automotive operations.

“The acquisition comes as we plan to build a new platform in the connected car sector,… by combining Harman’s knowhow in automotive electronics,… and Samsung’s IT and mobile technology.”

Connected car technologies is a promising sector, with the industry expected to hit one-hundred billion dollars by 2025 — a spike from 45 billion in 2015.

“The deal is expected to create a synergy effect,… as well as give Samsung a competitive edge in the automotive electronics industry — and could potentially rise as a new cash cow for the company.”

While Samsung itself will not be manufacturing cars,… the growing use of electronics and software as well as connectivity to smartphones within vehicles is expected to provide the company’s other businesses with more opportunities as well.

“The future technology is going towards artificial intelligence and infotainment, and likewise Samsung is looking to expand into these areas. Buying Harman gives it a stronger footing, and by combining Harman’s strengths with Samsung’s,… it can later incorporate new solutions to other areas, like smartphones.”

The acquisition comes after Samsung’s heir-apparent Lee Jae-yong officially ascended to the board of the directors — a move seen to strengthen his grip over the family-led conglomerate.
The latest deal shows the new Samsung under the younger Lee is open to fostering new areas of growth,… including in sectors it has little track record.
Kim Min-ji, Arirang News.

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