The world of audio and infotainment technology is dominated by a few key players, and Harman International Industries is one of the most recognizable names in the industry. Founded in 1953 by Sidney Harman, the company has been a pioneer in innovative audio solutions for over six decades. However, in 2016, the company underwent a significant change when it was acquired by a global technology giant. In this article, we’ll delve into the story of who bought Harman and explore the implications of this acquisition on the industry.
The Rise of Harman International Industries
Before we dive into the details of the acquisition, let’s take a brief look at the history of Harman International Industries. Founded by Sidney Harman in 1953, the company started as a small manufacturer of audio equipment. Over the years, Harman expanded its product range to include car audio systems, professional audio solutions, and home audio equipment. The company’s commitment to innovation and quality helped it grow rapidly, and by the 1970s, Harman had become a household name in the audio industry.
In the 1980s, Harman made a strategic move into the infotainment industry, acquiring several companies, including Infinity Systems and JBL. This expansion helped Harman become a leading player in the car audio market. The company continued to innovate and expand its product range, introducing cutting-edge technologies like navigation systems and connectivity solutions.
The Acquisition of Harman International Industries
In November 2016, Samsung Electronics announced that it would acquire Harman International Industries for approximately $8 billion. This acquisition marked a significant milestone in the history of both companies, as it brought together two industry leaders in technology and audio innovation.
The acquisition was seen as a strategic move by Samsung to expand its presence in the infotainment industry, particularly in the automotive sector. Harman’s strong reputation and expertise in audio and infotainment solutions made it an attractive target for Samsung. The acquisition also provided Samsung with access to Harman’s extensive network of automaker partnerships, including companies like BMW, Mercedes-Benz, and Volkswagen.
Why Samsung Bought Harman
Samsung’s acquisition of Harman was a deliberate move to strengthen its position in the rapidly evolving automotive technology market. Here are some key reasons why Samsung bought Harman:
Expansion into New Markets
By acquiring Harman, Samsung gained entry into the lucrative automotive infotainment market. This move allowed Samsung to diversify its revenue streams and tap into the growing demand for connected car technologies.
Access to Advanced Technologies
Harman’s expertise in audio and infotainment solutions, including navigation systems, telematics, and driver assistance systems, was a major draw for Samsung. The acquisition provided Samsung with access to advanced technologies that could be integrated into its own product range.
Strategic Partnerships
Harman’s relationships with major automakers like BMW, Mercedes-Benz, and Volkswagen were a significant factor in Samsung’s acquisition. These partnerships provided Samsung with a foothold in the automotive industry, enabling the company to tap into the growing demand for connected car technologies.
Enhanced Competitiveness
The acquisition of Harman helped Samsung to enhance its competitiveness in the technology industry. By acquiring a leading player in the infotainment market, Samsung gained a significant advantage over its rivals, including companies like LG and Qualcomm.
The Impact of the Acquisition
The acquisition of Harman by Samsung had far-reaching implications for both companies, as well as the industry as a whole. Here are some key ways in which the acquisition impacted the industry:
Consolidation in the Industry
The acquisition marked a significant consolidation in the infotainment industry, with Samsung emerging as a major player in the market. The deal reinforced the trend of consolidation in the technology industry, where large companies are acquiring smaller firms to expand their capabilities and footprints.
Increased Competition
The acquisition of Harman by Samsung increased competition in the infotainment market, as other companies like LG and Qualcomm looked for ways to match Samsung’s capabilities. This increased competition has driven innovation and led to the development of more advanced technologies.
Enhanced Innovation
The acquisition brought together two industry leaders in innovation, leading to the development of more advanced technologies. The deal enabled Samsung to tap into Harman’s expertise in audio and infotainment solutions, while Harman gained access to Samsung’s advanced technologies in areas like artificial intelligence and 5G connectivity.
Job Creation and Economic Growth
The acquisition had a positive impact on employment and the economy, as Samsung invested heavily in expanding Harman’s operations. The deal created new job opportunities in research and development, manufacturing, and sales, contributing to economic growth.
What’s Next for Harman and Samsung?
The acquisition of Harman by Samsung marked a new chapter in the history of both companies. As the industry continues to evolve, here are some key areas where we can expect to see growth and innovation:
Autonomous Vehicles
With the acquisition, Samsung gained access to Harman’s expertise in autonomous vehicle technologies, including driver assistance systems and telematics. As the industry moves towards autonomous vehicles, we can expect to see Samsung and Harman working together to develop cutting-edge solutions.
Artificial Intelligence
The deal brought together two leaders in artificial intelligence, with Samsung’s expertise in AI complementing Harman’s knowledge of audio and infotainment solutions. We can expect to see the development of more advanced AI-powered infotainment systems and autonomous vehicle technologies.
5G Connectivity
The acquisition enabled Samsung to leverage Harman’s expertise in connectivity solutions, including 5G connectivity. As 5G networks become more widespread, we can expect to see Samsung and Harman working together to develop advanced connected car technologies.
Conclusion
The acquisition of Harman International Industries by Samsung Electronics was a significant milestone in the history of both companies. The deal marked a strategic move by Samsung to expand its presence in the infotainment industry, particularly in the automotive sector. As the industry continues to evolve, we can expect to see Samsung and Harman working together to develop cutting-edge technologies, driving innovation and growth in the years to come.
| Company | Acquisition Date | Acquisition Price |
|---|---|---|
| Harman International Industries | November 2016 | $8 billion |
In conclusion, the acquisition of Harman by Samsung was a strategic move that marked a new chapter in the history of both companies. As the industry continues to evolve, we can expect to see Samsung and Harman working together to drive innovation, growth, and success in the years to come.
Who is the buyer of Harman?
The buyer of Harman is Samsung Electronics, the South Korean technology giant. Samsung Electronics acquired Harman International Industries Inc. in November 2016 for approximately $8 billion in cash. This acquisition marked a significant milestone for both companies, as it allowed Samsung to expand its presence in the automotive and audio industries, while providing Harman with access to new technologies and resources.
The acquisition was a strategic move by Samsung to strengthen its position in the connected car market. Harman’s expertise in audio and infotainment systems, as well as its relationships with major automotive manufacturers, made it an attractive target for Samsung. The deal also provided Samsung with a platform to develop and market new automotive technologies, such as autonomous driving and advanced driver-assistance systems.
What is Harman’s product portfolio?
Harman’s product portfolio includes a wide range of audio and infotainment systems for the automotive, consumer, and professional markets. The company is best known for its high-end Speakers, amplifiers, and audio processing systems, which are used in luxury vehicles and high-end home theaters. Harman also offers a range of wireless audio products, including headphones, earbuds, and speakers, under brands such as JBL, Harman Kardon, and AKG.
In addition to its consumer products, Harman provides a range of solutions for the automotive industry, including infotainment systems, telematics, and cybersecurity solutions. The company’s automotive division supplies audio and infotainment systems to major manufacturers such as Mercedes-Benz, BMW, and Toyota. Harman’s professional division provides audio solutions for stadiums, arenas, and public venues, as well as enterprise communications systems for businesses.
What are the benefits of Samsung’s acquisition of Harman?
The acquisition of Harman provides Samsung with a number of benefits, including access to new markets, technologies, and customers. Harman’s expertise in audio and infotainment systems complements Samsung’s existing strengths in display and semiconductor technologies, allowing the company to offer a more comprehensive range of solutions for the automotive and consumer electronics industries.
In addition, the acquisition provides Samsung with a platform to develop and market new technologies, such as autonomous driving and advanced driver-assistance systems. Harman’s relationships with major automotive manufacturers also give Samsung a foothold in the connected car market, which is expected to be a major growth driver in the coming years.
What impact will the acquisition have on Harman’s operations?
The acquisition of Harman by Samsung is expected to have a minimal impact on Harman’s day-to-day operations. Harman will operate as a standalone subsidiary of Samsung, with its existing management team and operations remaining in place. This will allow Harman to continue to innovate and develop new products and technologies, while benefiting from Samsung’s resources and expertise.
In the short term, there may be some integration of operations and systems between the two companies, but this is expected to be a gradual process. Harman’s employees and customers can expect business as usual, with the company continuing to provide high-quality audio and infotainment systems for the automotive, consumer, and professional markets.
What are the implications of the acquisition for the automotive industry?
The acquisition of Harman by Samsung has significant implications for the automotive industry, as it brings together two major players with complementary strengths in technology and innovation. The deal provides Samsung with a platform to develop and market new automotive technologies, such as autonomous driving and advanced driver-assistance systems, which are expected to be major growth drivers in the coming years.
The acquisition also gives Harman’s automotive division access to Samsung’s strengths in display and semiconductor technologies, allowing the company to develop more integrated and innovative solutions for the connected car market. This is expected to drive growth and innovation in the industry, as well as provide new opportunities for collaboration and partnership between Samsung, Harman, and other major automotive manufacturers.
What are the implications of the acquisition for Samsung’s competitors?
The acquisition of Harman by Samsung has significant implications for Samsung’s competitors, as it strengthens the company’s position in the connected car market and provides a platform for growth and innovation. The deal provides Samsung with a significant advantage over its competitors, particularly in the areas of automotive technology and innovation.
The acquisition also raises the stakes for Samsung’s competitors, as they will need to respond to the new competitive landscape. This may involve investing in research and development, making strategic acquisitions, or forming partnerships with other companies to stay competitive.
What does the future hold for Harman and Samsung?
The future looks bright for Harman and Samsung, as the two companies work together to develop and market new technologies and innovations for the automotive, consumer, and professional markets. The acquisition provides a platform for growth and expansion, as well as opportunities for collaboration and innovation.
In the coming years, we can expect to see new products and technologies emerge from the partnership, including advanced automotive systems, new audio and infotainment solutions, and innovative consumer electronics products. The acquisition also provides a foundation for future growth and expansion, as Samsung and Harman work together to address emerging trends and opportunities in the technology and automotive industries.