Fast lane

14 November 2016 By Robyn Mak Follow @mak_robyn

The South Korean group is buying U.S. car component maker Harman in its biggest-ever deal. As cellphone growth slows, Samsung is betting big on “connected” auto technology. Harman’s dominant market share and relationships with carmakers should put Samsung at the head of the pack.

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Samsung Electronics said on Nov. 14 it will buy U.S.-listed Harman International Industries for $8 billion. Samsung will pay $112 per share in cash – a premium of 28 percent to Harman's closing share price on Nov. 11.

Harman's best-known properties include consumer audio brands JBL, Harman Kardon and Mark Levinson, but the company's
"connected car" unit also supplies integrated entertainment, navigation and telematic systems to automobile makers, as well as safety and security products.

The agreement has been unanimously approved by the boards of directors of both companies, and is subject to approval by Harman shareholders and regulators, according to the companies.

Harman will operate as a standalone Samsung subsidiary, retaining the current management team, workforce, and all of Harman's consumer and professional audio brands, according to the statement.

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