Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Vodacom’s Maziv deal gets makeover ahead of crucial hearing

      18 July 2025

      Cut electricity prices for data centres: Andile Ngcaba

      18 July 2025

      Takealot taps Mr D to deliver toys, pet food and future growth

      18 July 2025

      ‘Oh, Ani!’: Elon’s edgy bot stirs ethical storm

      18 July 2025

      Trump U-turn on Nvidia spurs talk of grand bargain with China

      18 July 2025
    • World

      Grok 4 arrives with bold claims and fresh controversy

      10 July 2025

      Samsung’s bet on folding phones faces major test

      10 July 2025

      Bitcoin pushes higher into record territory

      10 July 2025

      OpenAI to launch web browser in direct challenge to Google Chrome

      10 July 2025

      Cupertino vs Brussels: Apple challenges Big Tech crackdown

      7 July 2025
    • In-depth

      The 1940s visionary who imagined the Information Age

      14 July 2025

      MultiChoice is working on a wholesale overhaul of DStv

      10 July 2025

      Siemens is battling Big Tech for AI supremacy in factories

      24 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Meta bets $72-billion on AI – and investors love it

      17 June 2025
    • TCS

      TCS+ | Samsung unveils significant new safety feature for Galaxy A-series phones

      16 July 2025

      TCS+ | MVNX on the opportunities in South Africa’s booming MVNO market

      11 July 2025

      TCS | Connecting Saffas – Renier Lombard on The Lekker Network

      7 July 2025

      TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

      4 July 2025

      TCS | Tech, townships and tenacity: Spar’s plan to win with Spar2U

      3 July 2025
    • Opinion

      A smarter approach to digital transformation in ICT distribution

      15 July 2025

      In defence of equity alternatives for BEE

      30 June 2025

      E-commerce in ICT distribution: enabler or disruptor?

      30 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Samsung to buy Harman for $8bn

    Samsung to buy Harman for $8bn

    By Agency Staff14 November 2016
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Harman is a market leader in connected car solutions
    Harman is a market leader in connected car solutions

    Samsung Electronics agreed to buy Harman International Industries for about US$8bn (R115bn) to expand in connected automobiles and reduce its reliance on a slowing smartphone market.

    The cash offer values Harman shares at $112 apiece, Suwon, Korea-based Samsung said in a statement on Monday. The offer is 28% above Harman’s closing price of $87,65 in New York on Friday.

    Samsung has been expanding into the automotive sector, buying a stake in electric car maker BYD and considering an offer for sections of Fiat Chrysler’s parts unit, a deal said to have broken down just weeks ago.

    While Harman became a legendary name in high-end audio equipment, the company has pushed deeper into automotive supplies and now gets 65% of sales from the sector.

    “The deal size shows how desperate Samsung is for a new growth driver,” said Greg Roh, an analyst at HMC Investment Securities. “Samsung may have figured that it can’t become a leader in the car component business by itself, so it needs a big brand to get into the market.”

    Shares of Samsung fell 2,8% at the close in Seoul before the announcement was made. Samsung said this is the largest ever overseas deal by a single Korean company.

    Samsung said Harman is the market leader in connected car solutions, with more than 30m vehicles equipped with its connected car and audio systems and telematics. Telematic devices allow in-vehicle access to specific services, including insurance, car parks and anti-theft security. The Stamford, Connecticut-based company has an order backlog for the auto market of $24bn as of 30 June.

    The company’s interest in Fiat’s Magneti Marelli coincided with its Galaxy Note7 smartphone debacle, which resulted in a global recall, the killing-off of the model and is expected to cost the company more than $6bn.

    “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,” Samsung vice chairman Kwon Oh-hyun said. “Harman immediately establishes a strong foundation for Samsung to grow our automotive platform.”

    Evercore is serving as financial adviser to Samsung, while JPMorgan and Lazard are advising Harman, according to the statement.

    The audio company can trace its roots back to the 1950s, when Sidney Harman teamed up with Bernard Kardon to make high-fidelity machines. The company would later acquire brands including JBL and Infinity, among other audio equipment makers, and become a leader in high-end car stereo systems. It also owns the Bang & Olufsen brand for cars after acquiring the business last year.  — (c) 2016 Bloomberg LP



    Bang & Olufsen Harman Harman Kardon Infinity JBL Kwon Oh-hyun Samsung
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleTrump vows to keep tweeting
    Next Article Vodacom SA lifts group’s first half

    Related Posts

    TCS+ | Samsung unveils significant new safety feature for Galaxy A-series phones

    16 July 2025

    Samsung’s bet on folding phones faces major test

    10 July 2025

    Samsung unfolds the future with thinnest, lightest Galaxy Z Fold yet

    9 July 2025
    Company News

    Vertiv to acquire custom rack solutions manufacturer

    18 July 2025

    SA businesses embrace gen AI – but strategy and skills are lagging

    17 July 2025

    Ransomware in South Africa: the human factor behind the growing crisis

    16 July 2025
    Opinion

    A smarter approach to digital transformation in ICT distribution

    15 July 2025

    In defence of equity alternatives for BEE

    30 June 2025

    E-commerce in ICT distribution: enabler or disruptor?

    30 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.