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Samsung steers toward IoT with $8bn autoparts maker acquisition

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Samsung Electronics CEO Kwon Oh-hyun at a shareholders' meeting on Oct. 27.   © Reuters

SEOUL -- Samsung Electronics on Monday announced an $8 billion acquisition of U.S. autoparts supplier Harman International Industries, setting a course for new opportunities in the growing "internet of things" field amid troubles in its mainstay smartphone business.

The South Korean electronics giant plans to turn Harman into a wholly owned subsidiary by fall 2017. Harman is known for its GPS navigation and audio systems, as well as for safety features designed to prevent accidents. It rang up about $6.9 billion in sales and $680 million in operating profit for the fiscal year ended in June, with over 60% of sales coming from automotive components.

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