Samsung expands its audio and automotive business lines with the purchase of Harman

With this operation, valued at 7.500 million euros, The South Korean giant reinforces its presence in the sound market, with brands like JBL, Mark Levinson, AKG, Lexicon, Infinity o Revel. However, This strategic move is a commitment by the company to enter the automotive segment and, more specifically, for the connected car, where Harman has a leading role.

Samsung Electronics has reached an agreement to acquire the firm Harman International Industries by 8.000 million euros (7.450 million euros).

After completing the purchase, expected in the third quarter of 2017, Harman will become a subsidiary of Samsung Electronics America, although it will operate as an independent subsidiary, and its direction will continue to be headed by Dinesh Paliwal, current president and CEO of the company. In addition, will retain the template and facilities and the audio brands, both professional and consumer.

This is a strategic operation by the South Korean manufacturer to expand its business lines and embark on new markets..

To your product catalog, Samsung to incorporate Harman audio business that includes JBL brands, Harman Kardon, Mark Levinson, AKG, Lexicon, Infinity y Revel, in addition to Bowers licenses & Wilkins y Bang & Olufsen. Solutions that have a strong presence in the environment of professional facilities, both permanent, in stadiums or museums, as in carrying out different events.

These brands will optimize the competitiveness of mobile phone lines, screens, Samsung virtual reality solutions and wearable products.

Connected car

However, The basis of this acquisition is found in the strategic line of the company that wants to bet heavily on entering the automotive environment., a market that is expected to grow more than 100.000 millions of dollars in 2025.

Harman has a strong presence in the connected car solutions segment and has developed different navigation systems, entertainment, security and voice. More than 30 millions of vehicles worldwide from brands like BMW, Toyota or Volkswagen incorporate their services.

Approximately, he 65% of the sales made by Harman in the last 12 months (7.000 million dollars) are related to the car. Your order book for this market, a 30 June 2016, was approximately 24.000 million dollars.