Latest takeover marks tech giant’s 1st M&A since $8 billion Harman acquisition in 2016
Samsung Electronics is strengthening its audio business by acquiring Masimo’s Sound United consumer audio business for a price of $350 million.
According to Samsung on Wednesday, its audio subsidiary Harman International plans to close the transaction by the end of this year as it looks to further solidify its leadership in the fast-growing global audio market. The company estimated that the consumer audio market is expected to reach $70 billion by 2029 from $60.8 billion in 2025.
“This acquisition represents a strategic step forward in the expansion of Harman’s core audio business and footprint across key product categories such as home audio, headphones, hi-fi components and car audio,” said Dave Rogers, president of Harman’s lifestyle division.
Samsung’s latest takeover marks its largest acquisition since the Korean electronics giant bought Harman for $8 billion in 2016.
“It complements our existing strengths and opens new avenues for growth. Sound United’s portfolio of world-class audio brands, including Bowers & Wilkins, Denon and Marantz, will join Harman’s iconic family of brands, including JBL, Harman Kardon, AKG, Mark Levinson, Arcam and Revel,” said Rogers.
“Built on a shared legacy of innovation and excellence in audio technology, this combined family of brands, together with the talented employees of both companies, will deliver complementary audio products, strengthen our value proposition and offer more choices to consumers.”
Bowers & Wilkins, founded in the United Kingdom in 1966, is a luxury audio brand well-known for its creative designs, luxurious materials and high-quality sound. Nautilus, B&W’s flagship loudspeaker launched in 1993, costs over 150 million won ($107,000) per unit.
Denon, a producer of high-quality home theater and audio equipment, has over a century of history and invented the first CD player. Marantz is famous for making high-performance amplifiers and receivers.
According to Samsung, Harman maintained its top position last year, accounting for approximately 60 percent of the portable audio market worldwide. Building on the already-stacked car audio lineup featuring industry-leading names such as Harman Kardon, JBL and AKG, Samsung said it plans to expand its portfolio with B&W and other brands to offer excellent audio experiences and sound services to automakers and consumers.
Samsung emphasized that the audio business acquisition will strengthen the competitiveness of its mobile and TV sound and audio technologies while creating synergy for consumer experiences. The company has improved the sound quality of its smartphones, tablets, laptops and earphones, utilizing Harman’s sound tuning technologies and expertise.
Samsung previously said during its annual shareholders’ meeting in March that it would seek meaningful mergers and acquisitions to ease investor concerns about the firm’s growth, with plans to achieve practical results this year.
The acquisition came after Masimo, a Nasdaq-listed global medical technology firm, announced earlier that it would review its consumer audio business and support the company’s strategic focus on driving innovation in its core healthcare business.
“Since I took over as CEO, a key objective has been refocusing our business to ensure we are allocating time and resources to areas of unmet clinical need and driving growth and operational efficiencies,” said Katie Szyman, CEO of Masimo.
“This transaction aligns with these objectives. Our consumer audio business and its talented team will be well-positioned for growth and success under Harman’s leadership.”
hwkan@heraldcorp.com
