The South Korean giant has bought the leading company in electronics for smart carts, a sector that is set to grow by leaps and bounds in the coming years
Samsung increases its range of interest and expertise by buying Harman, one of the world's leading creators of hi-tech solutions for cars. This underscores the South Korean giant's willingness to significantly enter the connected car market.
The deal will be finally completed in the second half of 2017 and will cost Samsung more than 8 billion. It is one of the most expensive acquisitions in the history of the South Korean company. And it is also an answer to those who thought that Samsung wanted to take a moment of respite. Instead, the Korean company paid $112 per share in cash to the Harman Group, a 28 percent increase over the group's market price in the past week. Not crazy, given that the connected car device market alone generated $7 billion in revenue over the past year for Harman.
A device against the competition
Samsung's significant investment should be seen in response to Apple and Google. Indeed, the South Korean company doesn't have a service that can compete with CarPlay and Android Auto. In addition with the acquisition of the Harman Group, Samsung will improve the Auto mode already released in September 2015 for its Galaxy. That is, it will increase the help that the smartphone connected to the car can give to the driver. Samsung wants to enter and become a leader in automotive electronics, an industry set to grow to more than $100 billion by 2025. Harman is the market leader in automotive technology solutions, with more than 30 million vehicles currently equipped with its audio systems, including integrated infotainment, telematics and connections to safety systems. Not just cars. Harman has been one of the world's leaders in the loudspeaker sector for a few years now, and in this field, too, Samsung could be in for some big surprises in the future.