According to Reuters, South Korean tech-giant Samsung Electronics has made a milestone step into the auto industry by purchasing Harman International Industries for eight billion dollars. This also marks the company’s largest ever overseas acquisition.
Harman International Industries is based out of Stamford, Connecticut and makes connected car and audio systems to meet the demand of an increasingly mobile and software-friendly focused industry. Some of these products include infotainment systems, telematics, connected safety and security services. You can find them today in 30 million vehicles made by companies like BMW, Toyota, and Volkswagen. This opens a new, exciting source of growth and revenue for Samsung, which was recently burned by the exploding Note 7 debacle.
“We have been studying the automotive market for some time. We conclude that organic growth will not get us where we want to go fast enough,” said Samsung’s President and Chief Strategy Officer, Young Sohn, on a conference call.
He also made it clear that Samsung “will not get into the business of manufacturing cars.”