Samsung Acquires Harman International in an USD8bn Deal

Korea: Harman International Industries and Samsung Electronics signed an agreement, wherein, Samsung Electronics will acquire Harman International for USD112 per share (cash value), or total equity worth of almost USD8 billion. The acquisition of the company, is likely to drive a hope for Samsung to build driverless car in future.

As per Oh-Hyun Kwon, Vice-Chairman and CEO of Samsung Electronics, "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. As a Tier 1 automotive supplier with deep customer relationships, strong brands, leading technology and a recognised portfolio of best-in-class products, Harman immediately establishes a strong foundation for Samsung to grow our automotive platform."

“The vehicle of tomorrow will be transformed by smart technology and connectivity in the same way that simple feature phones have become sophisticated smart devices over the past decade,” said by Young Sohn, President and Chief Strategy Officer of Samsung Electronics

As per TechSci Research, the acquisition deal signed between both the companies, is anticipated to provide Samsung with the technical expertise of Harman International in the field of advance automotive technology. Consequent to which, Samsung is predicted to proceed with the acute research & development (R&D), to alter the constantly changing scenario of autonomous car technology market.

According to a recent report published by TechSci Research, “Global Autonomous Car Technology Market Forecast and Opportunities, 2035 – ADAS, Semi-Autonomous, Fully-Autonomous’’, global autonomous car technology market is expected to witness a CAGR of over 10% through 2035. The market is currently dominated by ADAS segment, which is expected to maintain its dominance over the next twenty years as well. The dominance of this segment can be attributed to anticipated increase in government regulations pertaining to integration of ADAS technologies in passenger cars. Further, semi-autonomous car technology is expected to witness robust growth over the next ten years, owing to anticipated decline in its average selling price coupled with rising volume sales.