Samsung Electronics (005930.KS) said on Monday it had agreed to buy Harman International Industries (HAR.N), a leader in connected car solutions, for about $8 billion, marking a major push into the auto-related technology.
Samsung said in a statement it will acquire Harman for $112.00 per share in cash, which represents a premium of 28 percent to Harman’s Friday closing price.
It said the deal would “give Samsung a significant presence in the large and rapidly growing market for connected technologies, particularly automotive electronics, which has been a strategic priority.”
The deal comes at a time when Samsung’s mobile phone business has been hit hard by the disastrous withdrawal of the fire-prone Galaxy Note 7.
Underscoring Samsung’s interest in the auto sector, the electronics giant has had talks with Fiat Chrysler Automobiles (FCA) over a potential sale or partnership for its Magneti Marelli auto parts maker, sources have said.