Home / Business and Economy / Harman Buys ZF's Driver Tech for $1.8 Billion
Harman Buys ZF's Driver Tech for $1.8 Billion
23 Dec
Summary
- Harman International acquired ZF's driver-assistance business for €1.5 billion.
- The deal boosts Samsung's position in smart camera technology for vehicles.
- ZF gained financial breathing room from the sale amid rising costs.
Harman International, owned by Samsung Electronics, has finalized the acquisition of a key driver-assistance business from Germany's ZF Group for €1.5 billion ($1.8 billion). This transaction is expected to solidify Samsung's leadership in smart camera technology for automotive applications, integrating ZF's radar and automotive computing operations into Harman's existing expertise.
The deal signifies a strategic move for Samsung, which acquired Harman in 2017, to expand its presence in the rapidly evolving software-driven vehicle market. It combines Harman's strengths in infotainment and connected-car systems with ZF's advanced camera technology, positioning both entities for the next generation of software-defined cars.
For ZF, the sale offers much-needed financial flexibility as it contends with higher refinancing costs and weakening returns. This divestment allows the company to reduce debt and reallocate resources to its core technologies, a move underscored by broader financial pressures impacting German auto suppliers amidst intense competition and the transition to electric vehicles.
