Seoul: Samsung Electronics Co. announced that its fully owned subsidiary, Harman International, will acquire the automotive technology division of Germany's ZF Friedrichshafen AG. This strategic move is part of Samsung's initiative to secure future growth avenues.

According to Yonhap News Agency, the acquisition, valued at 1.5 billion euros (approximately US$1.76 billion), involves Harman taking over ZF's advanced driver assistance system (ADAS) business. This deal aligns with Samsung's objective to strengthen its automotive business, an area that has seen significant growth recently.

The completion of the acquisition is anticipated by the end of 2026. Harman, which joined Samsung in 2017, reported sales of 14.3 trillion won (US$9.63 billion) in 2024, a significant increase from the 7.1 trillion won recorded at the time of its acquisition.

In a related development, Harman acquired the U.S.-based audio business of Masimo in May for 500 billion won. This acquisition included renowned premium brands such as Bowers and Wilkins, Denon, and Marantz.

Samsung Electronics has expressed its intention to continue pursuing major mergers and acquisitions through Harman, aiming for the affiliate to reach annual sales of US$20 billion by 2030. The company stated that the integration of Harman's digital cockpit with the ADAS under a centralized controller structure will enable it to lead emerging automotive trends.