Samsung Electronics said on Monday it had agreed to buy Harman International Industries for about $8 billion, a deal that enables the South Korean electronics giant to expand its presence in the automotive electronics market.
The acquisition would give Samsung (ssnlf) an immediate foothold in connected technologies, particularly automotive electronics, which the company says has been a strategic priority.
More than 30 million vehicles are equipped with Harman’s (har) connected car and audio systems, including embedded infotainment, telematics, connected safety, and security.
About 65% of Harman’s $7 billion of reported sales during the 12 months ended Sept. 30, 2016 are automotive-related, according to the company.
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Samsung said in a statement it expected to use cash to fund the deal, which represents a premium of 28% to Harman’s Friday closing price.
Harman will operate as a standalone Samsung subsidiary. Harman Chairman and CEO Dinesh Paliwal will continue to lead the company.