Samsung Electronics have agreed to acquire US-based auto-tech manufacturer Harman International Industries for USD 8 bn, its latest attempt to branch out beyond smartphones in the wake of the Galaxy Note 7 fiasco, writes Jonathan Cheng for the Wall Street Journal. The transaction is the largest in Samsung’s history, with the company saying they would pay USD 112 per share at a 28% premium over Harman’s closing price last Friday. While Harman’s name is usually associated with premium audio equipment, roughly 65% of the firm’s USD 7 bn in revenues actually came from supplying components and developing software for auto manufacturers. Harman’s automotive-focused products include navigation systems, infotainment, telematics and driver-assistance technologies, write the Trevis Team for Forbes.

…Software and electronics are playing an increasing role in the automobile industry, with automotive electronics estimated to account for upwards of 30% of a modern vehicle’s cost. The market for automotive electronics is projected to grow to over USD 100 bn by 2025, according to Samsung. Tech giants seem to be approaching the market in different ways. Firms such as Apple and Google appear to be betting big on building connected and self-driving car platforms that they could license out to automotive firms, Samsung’s initial focus is more hardware-oriented. This could prove to be a less risky, yet lucrative bet in the near term.