Samsung Electronics announced on the 7th that it will acquire a $500 million premium audio brand in the United States through its subsidiary Harman International (Harman). This will be Samsung Electronics' first large-scale merger and acquisition (M&A) in eight years, since it acquired Harman for about 9 trillion won in 2017.
The luxury premium audio business being acquired this time includes Bowers & Wilkins (hereafter B&W), Denon, Marantz, Polk, Definitive Technology, among others.
Founded in 1966 in the UK, B&W is a leading brand of luxury audio that offers premium materials and high-quality sound. The 'Nautilus' loudspeaker, which has become a symbol of B&W since its launch in 1993, costs more than 150 million won per unit.
The wireless speaker 'Zeppelin,' famous for its iconic streamlined design, and the PX7 series headphones, known for their luxurious design and noise-canceling technology, are representative products promoted by British soccer star David Beckham.
Along with B&W, Denon is a brand with a 115-year tradition that first invented the CD player, and Marantz is well-known for its high-quality sound in the premium amplifier and receiver product range.
Harman, which is based on premium brands such as JBL, Harman Kardon, AKG, Infinity, and Mark Levinson, maintains the number one position with about 60% market share in portable audio and continues to increase its share in the large headphone and wireless earphone markets.
In 2015, Harman acquired the car audio business of Bang & Olufsen, and in 2017, it also acquired the British high-end audio brand Arcam.
Harman explained that by acquiring luxury brands like B&W and Denon this time, it is solidifying its position as a global audio powerhouse and enhancing its competitiveness from consumer audio to car audio businesses.
Harman plans to consolidate the audio business of Massimo, which it is acquiring this time, with Harman's lifestyle division to secure the number one position in the consumer audio market, which is expected to grow from $60.8 billion in 2025 to $70 billion by 2029, further strengthening its business competitiveness.
In the car audio business, Harman plans to expand its portfolio with B&W and other existing brands like Harman Kardon and JBL, providing differentiated audio experiences for automotive companies and customers, thereby solidifying its business stature.
A representative from Samsung Electronics noted, "This big deal for Harman has significant meaning in strengthening Samsung Electronics' competitiveness in differentiated sound and audio technology for mobile and TV products," adding that it was made as part of a strategy to expand synergies in terms of consolidation and differentiated customer experiences through various speakers and audio devices.
Samsung Electronics has enhanced the sound quality of its smartphones, tablets, laptops, wireless earphones, soundbars, and Family Hub by utilizing the technologies and know-how of Harman AKG and Harman Kardon, and plans to maximize differentiation by applying the accumulated audio technologies and know-how from the brands being acquired this time.
Dave Rogers, president of Harman's lifestyle division, said, "Harman takes great pride in having grown into a world-class leader in audio as a company with 75 years of expertise, and with the addition of another luxury audio brand B&W, we expect to further solidify our position as a renowned audio powerhouse."
KT CEO Katie Seeman stated, "We expect the audio business unit being sold will grow even more under the leadership of Harman, a global audio specialist."
Harman is expected to complete the acquisition process for the Massimo audio division within the year.