In a surprising turn, Samsung has announced it will be purchasing American audio company Harman for in an all-cash deal totalling $8 billion US Dollars (roughly 10.5 billion AUD), ostensibly to gain a strong foothold in the expanding technological focus of the automotive industry.
Harman owns audio equipment manufacturers such as AKG, JBL, and Harman/Kardon, which in addition to offering consumer-facing products, also supply premium audio systems to vehicle manufacturers. The acquisition is Samsung’s largest one yet, emphasising the potential the South Korean tech giant sees in this space, but not quite making it clear how far they intend to take it.
The official word says that Samsung’s position as a world leader in displays, user interfaces, and semiconductor technology will create “significant growth opportunities” when paired with Harman’s auto-supply expertise. Perhaps it will materialise similarly to Harman's own futuristic car interior that was built into the Rinspeed Etos Concept, pictured here.
“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,” said Oh-Hyun Kwon, Vice Chairman and Chief Executive Officer of Samsung Electronics.
“As a Tier 1 automotive supplier with deep customer relationships, strong brands, leading technology and a recognized portfolio of best-in-class products, HARMAN immediately establishes a strong foundation for Samsung to grow our automotive platform.”
“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,” added Young Sohn, President and Chief Strategy Officer of Samsung Electronics.
“We see substantial long-term growth opportunities in the auto technology market as demand for Samsung’s specialized electronic components and solutions continues to grow. Working together, we are confident that HARMAN can become a new kind of Tier 1 provider to the OEMs by delivering end-to-end solutions across the connected ecosystem.”
Samsung could likely see the opportunity to approach the same automakers who Harman already supplies for in-car audio with an integrated package that includes a more immersive and intuitive infotainment experience.
They company already has years of experience with augmenting the Google’s open source Android operating system to fit their own needs on smartphones and tablets, an OS that some other automakers already use as a base for their own in-car software layer.
Further down the road, perhaps, will shall see the vines of this deal spread to connected car technology and autonomous driving capability. Samsung also recently announced its acquisition of Viv Labs, a startup formed by the creators of Apple’s Siri virtual assistant, for an undisclosed sum.
