Smart cars behind Samsung’s $8B bid for Harman

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http://www.usatoday.com/story/money/business/2016/11/14/samsung-buy-harman-international-8-billion/93786364/

South Korean electronics giant Samsung looks to very quickly get up to speed in the highly-competitive smart car business with its $8 billion acquisition of U.S. car and audio systems supplier Harman International

In an all-cash deal, Samsung will buy the Stamford, Conn.-headquartered firm for $112.00 per share. It is the biggest acquisition in Samsung’s history, the company said. Shares of Harman (HAR) surged 25% Monday to $109.96.

Automotive electronics is expected to grow to more than $100 billion by 2025, estimates Samsung, which has made the segment a strategic priority. But the electronics titan — hit in recent weeks by the recalls of its Galaxy Note 7 smartphoneand some washing machines with tops that could detach — is playing catchup in smart cars to competitors such as Apple, which has a CarPlay feature available in a growing number of vehicles, and Google and its Android Auto in-car platform.

With Harman, expected to operate as a standalone subsidiary after the deal is completed, Samsung gets a tech company that has developed its own auto software platform for personal assistants, cybersecurity, navigation and infotainment, and has relationships with automakers ranging from Audi to Volkswagen.

“The primary motivator for Samsung’s purchase of Harman is to tap into its automotive business,” said Jack Wetherill, senior market analyst at Futuresource Consulting. “This is absolutely about the connected car. Harman are major players in this business and Samsung are not. They know they need to get into it to leverage their IoT (Internet of Things), their smart home and smartphone businesses to effectively spread, develop and maximize their revenues and potential.”

The deal, which is subject to approval by Harman shareholders and regulators, is expected to be completed in mid-2017.

———-

samsung hopes its not a dum move to go smart..

“Samsung will buy the Stamford, Conn.-headquartered firm for $112.00 per share. It is the biggest acquisition in Samsung’s history, the company said. Shares of Harman (HAR) surged 25% Monday to $109.96.”

those who hesitate are lost..

“They know they need to get into it to leverage their IoT (Internet of Things)”

indeed..

“The primary motivator for Samsung’s purchase of Harman is to tap into its automotive business,” said Jack Wetherill, senior market analyst at Futuresource Consulting. “This is absolutely about the connected car. Harman are major players in this business and Samsung are not.”

401

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~ by seeker401 on November 21, 2016.

One Response to “Smart cars behind Samsung’s $8B bid for Harman”

  1. Reblogged this on World Peace Forum.

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