SEOUL: Samsung Electronics said Monday it would buy US auto parts maker Harman International Industries for $8 billion in a bid to enter the growing market for automotive technology to produce “connected” cars.
The deal, the biggest in the firm’s history, will provide a chance for the tech titan to move past the exploding Galaxy Note 7 crisis that is expected to cost it billions of dollars as well as its cherished reputation.
Board members of Samsung — the world’s largest producer of smartphones — approved the all-cash deal of the Connecticut-based firm for $112 a share, Samsung said in a statement.
The deal will give the South Korean giant a “significant presence” in the global market for online-connected auto parts, the firm said.
“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,” Samsung vice chairman Kwon Oh-Hyun said in a statement.
“Harman immediately establishes a strong foundation for Samsung to grow our automotive platform.”—APP
