Executive Briefings

Samsung Enters Automotive Supply Chain With $8Bn Deal

An $8bn acquisition may turn Samsung into a major supplier to the automotive industry. The South Korean smartphone manufacturer has entered into a definitive agreement with Harman International Industries, a market-leading maker of connected-car components, to buy the firm for $112 per share in cash.

Samsung says it expects the connected-automotive market to be worth more than $100bn by 2025 and described the market as a "strategic priority."

"As a tier one 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," said Oh-Hyun Kwon, vice chairman and CEO of Samsung Electronics.

He added that Harman complements Samsung's range of products and said joining forces was "a natural extension of the automotive strategy we have been pursuing for some time."

Samsung said more than 30 million cars are already equipped with Harman's infotainment systems, telematics sensors and connected safety and security features including cameras and warning systems.

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Samsung says it expects the connected-automotive market to be worth more than $100bn by 2025 and described the market as a "strategic priority."

"As a tier one 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," said Oh-Hyun Kwon, vice chairman and CEO of Samsung Electronics.

He added that Harman complements Samsung's range of products and said joining forces was "a natural extension of the automotive strategy we have been pursuing for some time."

Samsung said more than 30 million cars are already equipped with Harman's infotainment systems, telematics sensors and connected safety and security features including cameras and warning systems.

Read Full Article