24 August, 2025
harman-expands-audio-and-automotive-focus-after-major-divestiture

Harman International, a subsidiary of Samsung and a leader in automotive electronics and premium audio, has announced a strategic shift aimed at enhancing its core business sectors. The company will acquire the former Sound United assets from Masimo Consumer while simultaneously divesting its Digital Transformation Solutions (DTS) division to Indian IT giant Wipro for $375 million. This transaction, which involves 18 global offices and approximately 5,600 employees, is expected to finalize later this year.

The sale of the DTS division allows Harman to streamline its operations by exiting non-core areas and refocusing resources on automotive electronics and premium audio. The move reflects Harman’s commitment to pursuing new growth opportunities in the audio market, particularly in light of the recent acquisition of Sound United, which closed in May 2025 for $350 million. Sound United encompasses well-known brands such as Bowers & Wilkins, Denon, Marantz, and Polk, further enhancing Harman’s diverse portfolio that already includes JBL and automotive rights to the Bang & Olufsen brand.

Analysts suggest that the integration of Sound United’s assets could significantly bolster Harman’s offerings to electric vehicle (EV) manufacturers. The company has been actively expanding its ecosystem, having acquired Roon, a music management and streaming platform, last year to enhance its software and services capabilities.

Samsung’s acquisition of Harman in 2017 for $8 billion marked a significant milestone as Korea’s largest overseas acquisition at the time. Initial skepticism surrounded the deal, as Harman reported an operating profit of only 60 billion won (approximately $42.9 million) in its first year under Samsung. However, Harman has since transformed into a key profit driver, generating an impressive 1.3 trillion won in operating income last year.

As Harman prepares to close the sale to Wipro and integrate the Sound United brands, it is making a bold statement about its intentions to scale up its dominance in both the automotive and high-end audio markets. This strategic realignment positions Harman to leverage its expansive portfolio to meet the evolving demands of consumers and manufacturers alike.