HARMAN to Acquire ZF's ADAS Business for €1.5 Billion

HARMAN International announced Monday it has entered a definitive agreement to acquire ZF Group's Advanced Driver Assistance Systems business for €1.5 billion, marking a significant consolidation in the automotive technology sector.

The deal includes ZF's automotive compute solutions, smart cameras, radars, and ADAS software functions. Approximately 3,750 ZF employees across Europe, the Americas, and Asia are expected to join HARMAN when the transaction closes in the second half of 2026, pending regulatory approvals.

HARMAN, a wholly-owned subsidiary of Samsung Electronics, aims to integrate the acquired ADAS capabilities with its existing digital cockpit offerings to develop centralized computing platforms for next-generation vehicles. The combination is designed to support the automotive industry's shift toward software-defined vehicles by consolidating safety systems and user experiences on shared platforms.

"The industry is at an inflection point where safety, intelligence, and in-cabin experience must come together through a unified computing architecture," said Christian Sobottka, CEO and President of HARMAN's Automotive Division.

For ZF, the transaction provides an opportunity to reduce debt and concentrate resources on core technologies. "With HARMAN, we have found the ideal partner to fully unlock the growth and innovation potential of our ADAS business," said Mathias Miedreich, CEO of ZF Group. The deal also contributes to the company's debt reduction strategy.

HARMAN has grown its automotive and audio business from $7 billion to more than $11 billion since Samsung acquired the company in 2017. The company supplies technology to more than 50 million vehicles globally and operates iconic audio brands including JBL, Harman Kardon, and Bowers & Wilkins.

ZF reported sales of €41.4 billion in fiscal 2024 and employs approximately 161,600 people worldwide across 161 production locations in 30 countries. The company supplies mobility products and systems for passenger cars, commercial vehicles, and industrial technology applications.