Samsung Electronics (005930.KS) will acquire the advanced driver assistance systems (ADAS) business of Germany's ZF Friedrichshafen, the world's second-largest auto parts maker, for approximately 1.5 billion euros ($1.6 billion) through its subsidiary Harman.
Harman, the world's leading supplier of automotive digital cockpits, has secured the capabilities to lead software-defined vehicles (SDV), which will become the core of future mobility, through this acquisition.
Samsung Electronics announced on December 23 local time that Harman signed an agreement with Germany's ZF to acquire its ADAS business. The company plans to complete the acquisition process and integration of the two companies by next year.
Through this acquisition, Harman plans to make a full-scale entry into the automotive front camera and advanced autonomous driving assistance market, maximizing synergies with Samsung Electronics. Vehicles equipped with Harman's digital cockpit and autonomous driving solutions will be connected to Samsung's Galaxy smartphones and home appliances, establishing a "Home-to-Car, Car-to-Home" ecosystem.
"We will actively support automakers' transition to SDV by combining our expertise in automotive electronics with Samsung's IT technology leadership," Harman CEO Christian Sobottka said.
Samsung Electronics, which acquired German HVAC company Plect for 1.5 billion euros in May, has completed two trillion-won-scale M&A deals this year alone, including Harman's latest acquisition agreement, accelerating its expansion into future businesses.
