In an effort to break into the auto technology market, Samsung recently announced an $8 billion acquisition USD, or $112 per share.
Samsung’s purchase of Harman International Industries, a foremost player in the connected devices space, further promotes its ambitions to become a leader in automotive technology.
This acquisition comes at a time when many of tech’s biggest firms, including Apple and Google, are vying for space in the automotive sector. Google has partnered with Fiat Chrysler to produce autonomous Pacifica mini vans, while Apple is rumoured to be developing its autonomous car in a small Ottawa office.
By acquiring Harman, Samsung will take into possession the auto-tech leader’s relationships with existing auto manufacturing leaders such as BMW, Volkswagen and General Motors, according to Bloomberg.
Samsung writes in a statement that it expects the company’s automotive presence to grow by more than $100 billion by 2025.
“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,” Young Sohn, president and CSO of Samsung Electronics, said in a statement.
Unlike its tech giant counterparts. Samsung has said very little about entering the driverless vehicle space, and has instead focused its resources on developing in-car technology. However, with this acquisition, Samsung will bring on 8,000 Harman software designers and engineers that are exploring the potential of the IoT market.
The company claims that these additions will serve to develop the cloud-based, enterprise, data and services departments. Harman will continue to operate independently, as a standalone Samsung subsidiary.