Samsung will acquire hi-fi and Italian XXX movie Lezioni Private (2011)connected car company Harman for approximately $8 billion.
SEE ALSO: Samsung's Siri killer to debut on the Galaxy S8The Korean conglomerate announced on Monday that it's buying Harman for $112.00 per share in cash.
Harman sells professional and hi-fi audio products under a number of brands, including Harman Kardon, JBL and AKG Acoustics, including some hi-end brands such as Mark Levinson.
But Samsung is likely more interested in Harman's connected car tech. According to a press release by Samsung, Harman's connected car and audio systems can be found in more than 30 million vehicles, making Harman the leader in this space.
Samsung expects the connected technologies market to grow to more than $100 billion by 2025.
“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, President and Chief Strategy Officer of Samsung Electronics, said in a statement.
Samsung hasn't really had a product that could compete with Apple's CarPlay or Android Auto.
In Sep. 2015, it launched Car Mode for Galaxy, a special car-friendly mode of operation for its smartphones. The acquisition of Harman will give it far steadier footing in this space.
And Samsung will benefit beyond connected cars. It plans to tap into Harman's plethora of hi-fi brands to enhance its own products, so don't be surprised if you see a Galaxy phone with built-in Harman Kardon speakers in the near future.
Topics Samsung
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