Samsung has acquired Harman International Industries, an auto parts supplier best known by consumers for its Harman Kardon audio division. The $8 billion, all-cash deal is the largest in Samsung’s history, and an unusual move for a company that normally develops tech in-house. It instantly makes Samsung a much bigger player in the connected and autonomous vehicle industry dominated by Google, Apple and automakers like Tesla, GM and Volvo.
Harman CEO Dinesh Paliwal says that Samsung’s displays, connectivity and processing tech is a good fit with his firm’s automotive products. “Samsung is an ideal partner for Harman and this transaction will provide tremendous benefits to our automotive customers,” he said in a press release. Samsung Vice Chair Oh-Hyun Kwon added that Harman has an “unmatched automotive order pipeline” and a “strong foundation for Samsung to grow our automotive platform.”