Samsung Co. agreed to buy a U.S. automotive technology manufacturer for $8 billion, the South Korean electronics giant’s biggest deal ever. The Samsung Harman deal continues the increasing Bold Actions by companies looking to transform transportation.
Samsung said it would pay $112 a share in cash for Stamford, Conn.-based Harman International Industries Inc., an audio pioneer that has pushed aggressively into the automotive world.
While the deal is noteworthy as it is the largest for Samsung, it may not propel the acquirer into a dominant space in the digitization of transportation.
Samsung is still reeling from the failures of its Galaxy 7 and this acquisition is a recognition that cell phones will not be the only device making impact in the world’s movement towards IoT. Connecting cars and things are an important part of the new communication paradigm. While this acquisition is important to Samsung, how Harman is integrated and grown post the acquisition will determine how much impact it will really have.
