Samsung to Buy Car Tech Firm Harman for 8 Billion in South

first_img Economy adds 75K jobs in May A Petition Is Coming ? for a ‘Game of Thrones’ Final Season Do-Over Saint Laurent dazzles with men’s collection on Malibu beach Swimwear Styles for All Shapes and Sizes Figure Out Your Family Tree Just in Time For Father’s Day Samsung Electronics announced an $8 billion deal on Monday to buy Harman International Industries, marking a major push into the auto electronics market and the biggest overseas acquisition ever by a South Korean firm.The electronics giant previously shunned big acquisitions, and the latest deal underscores a strategic shift as the company tries to break into the high-barrier automotive industry where it has little track record.”An M&A deal this big is a first for us. But it shows that under Jay Y. Lee, the company is changing and open to new ways to grow,” a source familiar with the deal told Reuters, referring to Samsung Electronics’ vice chairman.  The purchase of the Stamford, Connecticut-based maker of connected car and audio systems is part of Samsung’s efforts to find new areas of growth as its mainstay smartphone business — scarred by the disastrous withdrawal of the fire-prone Galaxy Note 7 — slows.Automakers already include or are developing technologies to enhance safety and provide better smartphone connectivity and entertainment systems, creating an opening for tech companies to break into a market for software, services and components.Samsung agreed to acquire Harman for $112.00 per share in cash, a 28 percent premium to the U.S. firm’s closing price on Friday.”Samsung is using its huge cash pile to pull ahead of rivals in the auto technology market. But it remains to be seen whether Harman will be able to grow into a company that will be able to compete with the likes of Bosch and Continental,” said HDC Asset Management fund manager Park Jung-hoon.Harman’s products, which provide infotainment, telematics, connected safety and security services, are used in more than 30 million vehicles made by automakers such as BMW, Toyota Motor Corp. and Volkswagen, according to its website.Harman, the maker of JBL audio system, earns around two thirds of its revenue from the automotive-related segment, and its automotive order backlog as of end-June stood at $24 billion, more than three times annual sales of $6.9 billion in fiscal year 2016.Samsung created an automotive electronics business team a year ago to identify growth opportunities in the sector. This year it invested $450 million in Chinese automaker and rechargeable batteries firm BYD Co. Ltd.Separately, Samsung has held talks with Fiat Chrysler Automobiles (FCA) over a potential sale or partnership for the latter’s Magneti Marelli auto parts maker, sources have said. The current status of those talks is unclear.The Harman acquisition is subject to regulatory approvals and is expected to close in mid-2017.The deal was announced a day after media reports said Lee and several other heads of South Korea’s family-owned conglomerates were questioned by prosecutors investigating a political scandal engulfing South Korean President Park Geun-hye.(Reporting by Hyunjoo Jin and Miyoung Kim; Editing by Edwina Gibbs and Jacqueline Wong) DiCaprio, Pitt want to team up again after Tarantino hit New York takes aim at skyscrapers’ sky-high energy usage Airbnb Wants to Take You on an All-Inclusive Adventure BACK Turning Up the Heat in the Southeast for Holiday Weekend A Petition Is Coming ? for a ‘Game of Thrones’ Final Season Do-Over Cannes: ticketless festival-goers seek seats for films November 14, 2016 2 Musts for Tackling Allergy Season Beyond Meat Earnings Are Beyond Analyst Expectations How Human Behavior is Hurting Animals and What We Can Do to Protect Them Economy adds 75K jobs in May 2 Musts for Tackling Allergy Season North Carolina superintendent says new app can help reduce violence in schools A LifeMinute with John Lithgow: The Actor Discusses His Latest Projects 2020 Ballots May Have a New Box to Check ? 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What better way for dad to connect with his loved ones than learning about his family’s stor Lifeminute tv Cannes: ticketless festival-goers seek seats for films The electronics giant previously shunned big acquisitions, and the latest deal underscores a strategic shift as the company tries to break into the high-barrier automotive industry where it has little track record. Up Next: Samsung to Buy Car Tech Firm Harman for $8 Billion in South Korea’s Biggest Overseas Deal This story originally appeared on Reuters A LifeMinute with Ryan Seacrest Photo of solider placing flag at Tomb of Unknown Solider goes viral IHOP Sees Explosive Growth in To-Go Sales Enroll Now for $5 Figure Out Your Family Tree Just in Time For Father’s Day Albany Steps Closer to Releasing Trump’s State Tax Returns After Assembly Vote Add to Queue Justin Bieber Launches Plant-Based Deodorant Former world paragliding champion Rémy soars over Pyrenees HBO’s ‘Chernobyl’ Phenomenon Next Article Summer Beauty Survival Must-Haves US Navy: Russian destroyer almost collided with cruiser in the Philippine Sea Learn from renowned serial entrepreneur David Meltzer how to find your frequency in order to stand out from your competitors and build a brand that is authentic, lasting and impactful. 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