On December 23, 2025, a significant shift in the automotive landscape was announced with Harman International’s acquisition of the Advanced Driver Assistance Systems (ADAS) business from ZF Friedrichshafen AG. This merger highlights a growing trend in the automotive industry, where technology and automotive suppliers are coming together to shape the future of driving.
The Value of the Deal
The acquisition is valued at €1.5 billion, which translates to approximately $1.77 to $1.8 billion USD, depending on exchange rates. This moves Harman’s portfolio further into specialized automotive technologies that are essential for modern vehicles. But what exactly is Harman buying, and how will it affect the car industry?
What Harman is Acquiring
Harman’s acquisition includes ZF’s ADAS division, renowned for its advanced technologies in several key areas:
- Automotive Compute Solutions: These are essential for processing the complex data that modern vehicles require to operate safely and efficiently.
- Smart Cameras: Front-facing cameras are critical for various driving assistance features, enhancing driver safety and vehicle performance.
- Radar Systems: Integrated radar helps vehicles detect obstacles, which is vital for functions like adaptive cruise control and automatic braking.
- ADAS Software Functions: Software elements that carry out various tasks, from lane-keeping assistance to traffic sign recognition.
This comprehensive acquisition will allow Harman to enhance its existing technologies, positioning itself as a leader in the automotive tech field.
When Will This Happen?
The deal is expected to close sometime in 2026, pending regulatory approvals. This means that both companies will need to navigate various legal and compliance regulations to finalize the transaction.
Employees Transitioning to Harman
An important factor in any acquisition is the impact on employees. Approximately 3,750 ZF employees working in the ADAS unit across Europe, the Americas, and Asia will transition to Harman. This not only shows Harman’s commitment to integrating the existing talent but also reflects on the collaborative future that both companies envision.
Strategic Rationale Behind the Acquisition
For both Harman and Samsung, this acquisition is about strategically positioning themselves in a rapidly growing sector—ADAS and autonomous driving. Here’s a closer look at why this deal makes sense:
1. Expanding into the Future of Driving
The automotive landscape is evolving. As vehicles become more connected and autonomous, there is a growing demand for advanced driver assistance systems. By acquiring ZF’s ADAS division, Harman is tapping into a market projected to soar from roughly $42 billion in 2025 to an astonishing $70 to $130 billion by 2030-2035.
2. Integrating Technologies for More Intelligent Vehicles
Harman plans to merge ZF’s innovative technologies with its existing Digital Cockpit platforms. This includes infotainment systems, audio solutions, and connected car technologies. The aim is to create centralized computing architectures for software-defined vehicles (SDVs). This advancement in technology is expected to lead to:
- Safer In-Car Experiences: With features that improve audio perception and personalize the driving experience.
- Reduced System Complexity: By simplifying the technological framework within vehicles, leading to faster innovations and scalable solutions for automakers.
3. Leveraging Growth and Diversification
Since being acquired by Samsung in 2017 for $8 billion, Harman has experienced remarkable growth, with revenues jumping from $7 billion to over $11 billion annually. This acquisition allows Samsung to diversify further beyond consumer electronics, establishing a firm foothold in automotive technology as electric and autonomous vehicles gain traction in the market.
What Does This Mean for ZF Group?
For the ZF Group, the sale of its ADAS unit serves multiple strategic purposes:
- Debt Reduction: Facing financial pressures in the European auto supplier sector, this move will help ZF lower its debt.
- Focusing on Core Strengths: ZF aims to concentrate on its primary competencies in chassis, braking, and mobility technologies. CEO Mathias Miedreich noted that Harman is the “ideal partner” to unlock the full potential of the ADAS division.
Industry Trends and Future Outlook
This acquisition is more than just a financial transaction; it reflects broader trends in the industry. There’s a clear push toward consolidation among automotive suppliers and a growing interest from tech giants like Samsung in developing both software and hardware for vehicles.
As we move toward a future where cars are increasingly connected and autonomous, this deal stands as a significant milestone. It’s part of a series of recent acquisitions by Samsung aimed at shaping the automotive landscape for years to come.
Conclusion
Harman’s acquisition of ZF’s ADAS business marks a milestone in the transformation of the automotive sector. As technologies evolve and the market continues to grow, this deal