Samsung Electronics is acquiring automotive electronics manufacturer HARMAN International Industries for $8 billion (£6.4 billion).
The acquisition could signal Samsungâs move into the connected car market, with the related connected technologies sector expected to grow to more than $100 billion in value by 2025.
Samsung said US-based HARMAN will give it presence in the automotive electronics market, with more than 30 million vehicles equipped with itâs connected car solutions.
Around 65 per cent of HARMANâs seven billion dollars of sales between in the year to September 30 were related to the automotive market with a further $24 million worth of order backlog.
Samsung Electronics vice chairman and CEO Oh-Hyun Kwon claimed the manufacturer has been pursuing an automotive strategy for some time, with the purchase of HARMAN establishing a strong base in this sector from which to grow from.
HARMAN perfectly complements Samsung in terms of technologies, products and solutions, and joining forces is a natural extension of the automotive strategy we have been pursuing for some time, he said.
As a Tier 1 automotive supplier with deep customer relationships, strong brands, leading technology and a recognised portfolio of best-in-class products, HARMAN immediately establishes a strong foundation for Samsung to grow our automotive platform.