Samsung’s Harman sells digital solutions unit for $375m

(Samsung Electronics)

Harman International, the US-based auto electronics and audio subsidiary of Samsung Electronics, said Friday it has agreed to sell its digital transformation solutions division to Indian IT services giant Wipro for $375 million, in a move to streamline operations and sharpen its focus on key businesses.

Under the deal, Wipro will take over 18 global offices across the US, Europe and Asia, along with some 5,600 employees currently under Harman’s DTS banner. The transaction is expected to be completed within this year, according to both companies.

Harman explained that the divestiture will allow it to exit non-core operations and channel resources into strengthening competitiveness in its flagship automotive electronics and premium audio businesses, while also exploring new growth drivers.

Samsung acquired Harman in March 2017 for $8 billion, marking the largest overseas acquisition by a Korean company at the time. Despite initial skepticism -- the unit reported just 60 billion won ($42.9 million) in operating profit in its first year under Samsung -- Harman has since emerged as a key profit engine, logging 1.3 trillion won in operating income last year alone.

The sale also follows a series of acquisitions that highlight Harman’s ambition to expand its ecosystem. In May, the company signed a $350 million deal to acquire the consumer audio division of US medical technology firm Masimo. Last November, it snapped up Roon, a music management, search and streaming platform, to bolster its software and services portfolio.