German Chancellor Friedrich Merz talks to Holger Klein, CEO ZF Group, at the ZF stand at the opening of the IAA Mobility international motor show in September. (Photo by Sven Hoppe/picture alliance via Getty Images)
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Harman International said Tuesday it agreed to acquire the Advanced Driver Assistance Systems (ADAS) business of ZF Group.
The companies said in a statement the transaction is valued at 1.5 billion euros ($1.76 billion).
Harman, based in Stamford, Connecticut, is part of South Korea’s Samsung Electronics Co. ZF Group is based in Germany.
The acquisition comes as automakers increasingly are turning vehicles into “computers on wheels.” The value of electronics in cars and trucks has been increasing.
Harman says its strategy is to bring “the speed, intelligence, and intuitive experiences consumers expect from leading technology brands into vehicles, while also meeting the highest standards for automotive safety, reliability, and long-term platform support.”
“The industry is at an inflection point where safety, intelligence, and in-cabin experience must come together through a unified computing architecture,” Christian Sobottka, chief executive officer and president of Harman’s Automotive Division, said in the statement.
At ZF Group, “We have found the ideal partner to fully unlock the growth and innovation potential of our ADAS business,” Mathias Miedreich, CEO of the company said in the statement. “At the same time, this deal makes an important contribution to reducing our company’s debt and allows us to focus our resources on the core technologies in which ZF is a global leader.”
Samsung acquired Harman in 2017. The South Korean company said since that deal it has increased its audio and automotive business to $11 billion from $7 billion.
Harman “will further expand its technology foundation to deliver safer, more intelligent, and more intuitive in-vehicle experiences,” Young Sohn, board chairman of Harman and senior advisor, Samsung Electronics, said in the statement.
About 3,750 ZF Group employees will move to Harman when the deal is completed. Harman and ZF said the transaction is expected to completed in the second half of 2026, pending regulatory approvals.
When the acquisition is complete, Harman plans to merge ZF’s ADAS capabilities into its operations.