SEOUL, Nov. 14 (UPI) -- Samsung Electronics Co. announced Monday it will acquire U.S.-based Harman International Industries Inc. to expand its presence in auto technology.
The South Korean company will pay $112 per share, or about 28 percent more than Harman's $87.65 closing per share price in New York on Friday, in an $8 billion acquisition. Harman, based in Stamford, Conn., is considered a leader in car audio and automotive supplies, and the purchase will provide Samsung with existing relationships with BMW, Volkswagen, Jaguar, General Motors and other car companies. Automotive technology is a growing field, and Samsung competitors Apple and Google have already made entries into the market as the smartphone business slows.
The acquisition is Samsung's first since Samsung Group's Jay Y. Lee joined the board of directors of the family-run conglomerate.
"This is the first deal cut after Jay Y. joined the board and shows his management style is different from his father. He is an aggressive deal maker. In the longer term, Samsung is thinking that life after smartphones is electric vehicles." Daishin Securities Co. analyst Park Kang-ho told Bloomberg News.
Samsung President Young Sohn said in a statement Monday "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.
"We see substantial long-term growth opportunities in the auto technology market as demand for Samsung's specialized electronic components and solutions continue to grow."