Samsung Electronics said on Monday that it has agreed to acquire auto-systems manufacturer Harman for $8 billion as the South Korean giant eyes the growing market for connected cars. Samsung will pay $112 per share in cash, making the acquisition Samsung’s biggest ever. Overseas acquisitions are high on Samsung’s agenda in recent times, as the company bought artificial intelligence firm Viv Labs last month. It also recently bought a cloud service company, a mobile payments firm and a connected home startup.
Harman provides connected cars and audio systems with safety and entertainment features. More than 30 million cars are equipped with its auto systems. The majority of its $7 billion in annual sales in the year that ended September 30 came from auto-related technologies.
“Upon closing, the transaction will immediately give Samsung a significant presence in the large and rapidly growing market for connected technologies, particularly automotive electronics, which has been a strategic priority for Samsung,” the company said in a statement.