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| Wall Street Journal photo |
The South Korean smartphone maker said Monday that it would buy U.S. auto-parts supplier Harman International Industries Inc., based in Stamford, Conn., for $8 billion in an all-cash deal that instantly makes Samsung a major player in the world of automotive technology.
The deal—Samsung’s biggest acquisition in its history—reshapes the pecking order in the global automotive supply chain, reflecting a quickening pace of innovation and an increased role for companies with deep pockets and a keen understanding of mobile services.
Harman, an audio pioneer that dates back to 1953, has in recent years pushed aggressively into the automotive world under Chief Executive Dinesh Paliwal, and has secured billions in new business, including big contracts with General Motors Co. and Fiat Chrysler Automobiles NV. It has projected an order backlog of $24 billion, more than three times annual revenue, and about two-thirds of its current sales come from auto makers.
Harman has also diversified into software development and components for connected cars. Much of that has been done on the shoulders of major acquisitions such as a $780 million deal last year for Mountain View, Calif.-based software services company Symphony Teleca.
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