Harman sells system integration unit to Wipro to sharpen audio focus

Harman International Industries Inc., wholly owned by Samsung Electronics Co., has sold its digital transformation solutions (DTS) unit to India’s IT and consulting company Wipro Ltd., Harman said on Thursday, in a move to focus on audio and in-vehicle technology.

The division sold to Wipro oversees engineering research and development for connected products and software platforms. While the deal size was not disclosed, foreign media put it at $375 million.

Harman said in a press release that the transaction, expected to close by the end of this year, will see about 5,600 employees under the DTS division transfer to Wipro.

The deal follows Harman’s $350 million purchase in May of Masimo Corp.’s Sound United consumer audio division to reinforce its automotive sound and connected technology.

The acquisition brought premium audio brands, including B&W, Denon, Marantz, Polk and Definitive Technology, under Harman’s wing.

To strengthen Harman’s in-vehicle technology, Samsung in 2023 acquired Roon Labs, a US multi-device and multi-room audio technology firm, and France-based audio software company FLUX.

Connecticut-based Harman became a wholly owned subsidiary of Samsung in 2017 after the Korean company acquired it for about $8 billion – its biggest deal since inception. 

Harman’s operating profits have been on the rise since 2020.

In the second quarter of this year, it posted a 56.3% surge to 500 billion won, or about $360 million, in operating profit, with sales up 4.6% to 3.8 trillion won.

Write to Jeong-Soo Hwng at hjs@hankyung.com
 

Yeonhee Kim edited this article.