Samsung to acquire Bowers & Wilkins for $350 million

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Samsung to acquire Bowers & Wilkins for $350 million

Published: 07 May. 2025, 13:04 Updated: 08 May. 2025, 00:30

Audio report: written by reporters, read by AI

The Samsung Electronics in front of the company headquarters in southern Seoul on April 30. [NEWS1]

Samsung Electronics has restarted its push for mergers and acquisitions (M&A), with its automotive and audio subsidiary Harman International acquiring the audio division of U.S. medical device company Masimo for $350 million.

With this acquisition, Samsung’s Harman will gain control of several renowned high-end audio brands, including Bowers & Wilkins (B&W), a major name in luxury audio.

Harman signed an agreement on Tuesday with Masimo to acquire its audio division, according to Samsung Electronics.

Masimo, a Nasdaq-listed company specializing in AI-based medical devices, had expanded its audio division as part of a strategy to merge medical equipment with consumer electronics and audio products. Masimo’s audio unit includes brands such as B&W, Denon, Marantz, Polk and Definitive Technology.

Founded in 1966 in the United Kingdom, B&W is a luxury audio brand well-known among professionals and enthusiasts for its high-fidelity sound. Its flagship loudspeaker, the Nautilus, costs over 150 million won ($107,420) per unit.

Denon, with a 115-year history, invented the first CD player, while Marantz is recognized for its high-quality amplifiers and receivers.

Harman, which owns premium brands like JBL, Harman Kardon, AKG and Infinity, held 60 percent of the portable audio market last year, making it the global leader in that category.

The logos fro Harman International, Samsung Electronic's automotive and audio subsidiary, and Bowers & Wilkins (B&W), a major name in luxury audio [SCREEN CAPTURE]

Harman plans to merge Masimo’s audio division with its own lifestyle division, aiming to secure the No. 1 spot in the global consumer audio market, which is projected to grow from $60.8 billion in 2025 to $70 billion by 2029.

This is Samsung Electronics’ largest M&A deal since it announced the acquisition of Harman for $8 billion in 2016. Due to legal challenges involving Chairman Lee Jae-yong, the company had refrained from large-scale M&A activity in recent years.

Having entered the automotive electronics sector through the Harman acquisition, Samsung now appears to be expanding further in both the automotive and audio sectors through this latest deal. Harman’s operating profit in the first quarter of this year reached 300 billion won, comparable to the profits of Samsung’s VD (visual display) and DA (digital appliances) divisions.

Samsung expects the acquisition to significantly enhance its competitive edge in sound and audio technology across mobile devices and televisions.

With ownership of the world’s leading audio specialist, Samsung is expected to maximize synergy across its automotive and home appliance businesses. Harman plans to complete the acquisition of Masimo’s audio division within the year.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY PARK HAE-LEE [[email protected]]