The biggest acquisition deal of $8 billion in the history of Samsung makes it at the front line of expanding companies in the automotive tech arena. Samsung has proudly announced today morning about the acquisition of Harman which is a US based audio technology company. Harman supplies audio and infotainment technology to automotive industry in general.
Samsung is much confident about future growth with acquiring this company as Samsung already has expertise in displays, user interfaces and semi-conductor technology. Samsung says all of our expertise is likely to push Samsung growth in automotive industry.
Harman owns multiple brands including AKG, JBL and Harman Kardon, that are expected to grow their revenue by 100% in the next five years. The reasons behind this growth are the strategic deals which Harman has made during this year with Fiat, Chrysler and General Motors.
As the future automotive technology is likely to heavily rely on the software, screens, displays and processors, Samsung’s meat balls would be coming from them. Samsung CEO Oh Hyun said in a press release “We have been pursuing automotive strategy for some time and Harman adequately satisfy our vision with their technologies, products and solutions” He further added, “This acquisition would provide Samsung with an opportunity to streamline automotive strategy and immediately setup this platform”
This development from South Korean giant is likely to push other players to jump into the market like Google, Apple and others. The automotive tech industry is looking to expand in the coming years hence, is quite lucrative for these companies. Although, Apple was seen as pursuing its Apple Electric car development, has now rolled back its initiative and focusing on providing software technologies to existing automakers.
This back off from Apple is likely to bring up two giant competitors in the market and the rest are likely to make their fortune by following them.
via: News Samsung
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