Samsung Electronics doesn’t want to fall behind in the race to connect cars to the internet of things. The company just bought Harman International for $8 billion, the Dallas Morning News reported. The acquisition is the biggest deal in Samsung’s history.
Harman is best known for its car audio and infotainment brands including Harman Kardon, Infinity, and JBL. Integrating smart technology into vehicles has already started but is expected to increase exponentially in the coming years.
“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,” Young Sohn, the president and chief strategy officer of Samsung Electronics, said in a news release.
For proof, look no further than the fact that Google and Apple both have expressed interest in making their own cars. For Harman, the deal equals $112 per share, a 28 percent premium over where the company traded on Friday.
Harman’s connected car solutions — including audio, embedded infotainment, telematics, connected safety and security systems — are estimated to be installed in over 30 million vehicles globally.
The all-cash deal is expected to close in mid-2017, according to the release. Samsung Telecommunications, a division of Samsung Electronics, has headquarters in Richardson.
Delivering what’s new and next in Dallas-Fort Worth innovation, every day. Get the Dallas Innovates e-newsletter.