Samsung to acquire Harman

Samsung is increasing its focus on the connected car after the Korean firm plans to buy auto and audio product maker Harman in an all cash deal worth $8 Billion. Samsung lags Google and Apple on in-car entertainment and software systems (Android Auto and Apple CarPlay, respectively) so this deal will give it the kind of reach that could allow it to compete more evenly with its rivals inside the car.

You may best associate the name with audio equipment, but Harman is big on cars, too. The acquisition is Samsung’s largest to date and a big deal for its automotive ambitions. Around 65 percent of Harman’s sales — which totaled $7 billion over the last year — were for car-related products. Samsung added that Harman products, which included connected car devices and audio systems, are installed in an estimated 30 million vehicles worldwide.

With Google rapidly advancing its automotive technology and Apple reportedly developing an electic vehicle (or not), it is perhaps not surprising that Samsung has made ground on automotive itself in 2016. This summer, it invested $450 Million into China based electric Car maker BYD, which includes Warren Buffett’s Berkshire Hathaway Inc. among its investor base. Other Reports suggested that the Korean giant was also eyeing up a bid for Magneti Marelli, a manufacturing subsidiary of Fiat Chrysler.

This investment will go beyond automotive, though, according to Samsung. The firm said it plans to marry its own electronics division and expertise with that of Harman for audio — both on the consumer and professional side of business — and connected devices, aka the internet of things, or IOT for short.