Harman, a subsidiary of Samsung Electronics, has decided to divest its non-core businesses and focus on its core operations, such as automotive electronics and audio.
On August 21, Harman announced that it had signed an agreement to sell its Digital Transformation Solutions (DTS) division to Indian IT services company Wipro. Under this agreement, 18 locations across the United States, Europe, and Asia, as well as approximately 5,600 employees, will be transferred to Wipro. The acquisition process is expected to be completed within this year.
The DTS division was responsible for enterprise digital transformation and software services, but it accounted for only a small portion of Harman's total revenue. Harman explained that by divesting this division, it has laid the foundation to focus its capabilities on its main businesses in automotive electronics and audio.
A company representative stated, "By selling our non-core businesses, we will be able to strengthen our future growth engines and enhance our global competitiveness in the automotive electronics and audio sectors."
Harman has recently been accelerating investments in the audio and automotive electronics fields. In November last year, it acquired Roon, a music management, search, and streaming platform. This May, it made a series of acquisitions of world-renowned audio brands such as Bowers & Wilkins, Denon, and Marantz. Through these moves, Harman is strengthening its position in the premium audio market and expanding its portfolio to cover both automotive and consumer audio.
Industry observers believe that, with this divestiture, Harman will focus on businesses tailored to the era of future vehicles, including automotive software, connected cars, and in-car audio. Synergy with its parent company, Samsung Electronics, is also expected to be further enhanced.
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