Samsung announces acquisition of parent company JBL and Harman Kardon

Electronics giant Samsung has announced that it currently wants to buy Harman for almost 7.5 billion euros. Harman is the parent company of audio brands such as JBL and Harman Kardon. The South Korean company is buying the company to play a role in the automotive entertainment industry.

According to Samsung, nearly two-thirds of Harman’s sales come from the auto industry, which is a “strategic priority” for the South Korean electronics manufacturer. Samsung wants to play a role in the growing market of cars with wireless connections. The technology and relationships with automakers that Harman has should help Samsung with that.

It’s not just about cars, though. The South Korean manufacturer says it expects the acquisition to help Samsung’s mobile arm with, among other things, better audio in smartphones, virtual reality products and wearables. Samsung’s smartphones generally have few distinctive features in the field of audio.

Harman employs around 8,000 software designers and technicians, the manufacturer reports. If the takeover goes through, Harman will become a separate division of Samsung. The manufacturer expects to have approval from all relevant authorities around mid-2017. Harman’s shareholders have yet to give their approval to the acquisition.