In a statement, Young Sohn, Samsung's president and chief strategy officer, said: "The vehicle of tomorrow will be transformed by smart technology and connectivity in the same way that simple feature phones have become sophisticated smart devices over the past decade."
Harman is a market leader in connected car solutions, with its connected car and audio systems fitted in almost 30million vehicles, including embedded infotainment, telematics, connected safety and security.
According to analysts, around 65% of the company’s $7bn of reported sales during the 12 months ended September 30, 2016 were automotive-related, and its order backlog for this market is running at approximately $24bn.
Samsung currently generates the bulk of its revenues from its smartphone business, but is now looking for new areas of growth.
Harman’s experience is in designing and integrating sophisticated in-vehicle technologies and the acquisition is being seen as creating significant growth opportunities for the combined business by enabling it to leverage Samsung’s expertise in connected mobility, semiconductors, user experience, displays and its global distribution channels.
Samsung has previously shunned big acquisitions and this latest deal underscores a strategic shift as it looks to break into the automotive industry.
In 2015, Samsung created an automotive electronics business team to identify growth opportunities in the sector and earlier this year invested $450m in Chinese automaker and rechargeable batteries firm BYD.
The Harman acquisition is subject to regulatory approvals and is expected to close in mid-2017.
