Samsung to buy auto-parts supplier Harman for $8 billion, becomes major player in auto technology

Samsung Electronics Co. is making a drive for control of the car. 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 CEO 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.