Samsung Electronics has agreed to buy Harman International Industries in an $8 billion deal, marking a major push into the auto electronics market and the biggest overseas acquisition ever by a South Korean company.
The transaction highlights Samsung's efforts to break into the high-barrier automotive industry where it has little track record and also marks a strategic shift for the electronics company, which has previously shunned big acquisitions.
"An M&A deal this big is a first for us. But it shows that under Jay Y. Lee, the company is changing and open to new ways to grow," a source familiar with the deal told Reuters, referring to Samsung Electronics' vice chairman.
The purchase of the Stamford, Connecticut-based maker of connected car and audio systems is part of Samsung's search for new growth areas as its smartphone business - scarred by the withdrawal of the fire-prone Galaxy Note 7 - slows.
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