Samsung Electronics makes biggest M&A move in nine years

Samsung Electronics has acquired the audio division of U.S. company Masimo, known for its premium audio brand Bowers & Wilkins (B&W), for $350 million. This marks the largest acquisition for Samsung since its 2016 purchase of Harman, an audio industry leader. The move has sparked speculation about whether Samsung will ramp up its mergers and acquisitions (M&A) strategy moving forward.

The deal, announced May 7, sees Samsung’s subsidiary Harman taking control of Masimo’s audio division, which includes iconic brands such as B&W, Denon, Marantz, Polk, and Definitive Technology. Founded in 1966 in the U.K., B&W is known for its high-end audio products. The brand’s flagship speaker, the Nautilus, sells for about 15 million won ($12,000) per unit.

Samsung said the acquisition will strengthen Harman’s position in the competitive global audio market. The company aims to expand its reach across multiple segments, from general consumers to audiophiles and the automotive sector. Harman, which already boasts premium brands including JBL, Harman Kardon, and AKG, held 60% of the portable audio market in 2023. The company has also made gains in the headphone and wireless earbud markets.

“Harman’s 75 years of audio expertise has made it a powerhouse in the industry, and acquiring B&W strengthens our position as a global leader in premium audio,” said Dave Rogers, president of Harman’s Lifestyle Division.

Samsung expects the acquisition to bring synergies with its other major product lines, including smartphones, TVs, and home appliances, by leveraging Harman’s cutting-edge audio technology and expertise to improve sound quality.

This deal is the first major M&A move for Samsung since Vice Chairman Lee Jae-yong was acquitted in February on charges related to a controversial merger. Many in the business world are now watching closely to see whether this acquisition signals the beginning of a broader M&A strategy for the company.

박현익 기자 beepark@donga.com