Harman International has acquired the ZF ADAS Division. This will provide Harman with a highly sought-after combination of interior and safety technologies for automakers across the globe. The agreed-upon enterprise value is €1.5 billion. The required regulatory permissions must be obtained before the deal may proceed.
As per the agreement, ZF will give Harman its ADAS business, which includes radar technology, smart cameras, compute solutions, and ADAS software. The ZF Group will continue to handle passive safety technology and chassis electronics. Additionally, ZF will keep up its efforts in the areas of autonomous driving and driver assistance for commercial vehicles.
The future company will be able to provide integrated or modular solutions that are suited to the objectives of various vehicle manufacturers with the combined experience of Harman and ZF’s ADAS business unit. It positions the company as one of the top suppliers of cross-domain automotive electronics worldwide by fusing safety, perception, intelligence, connectivity, and vehicle systems into a complete experience for drivers and passengers.
Key Comments
“With the acquisition of ZF’s ADAS business by Harman, we have reached an important milestone in the strategic realignment of the ZF Group,” said Mathias Miedreich, CEO of ZF. “In Harman, we have found the ideal partner to fully develop the growth and innovation potential of our driver assistance business for passenger cars and also to open up the best possible prospects for our employees. At the same time, the transaction will help to significantly reduce ZF’s financial liabilities. The sale enables us to focus our resources on those core ZF technologies such as chassis, powertrain, commercial vehicles, and industrial applications in which we are global leaders.”
“Our acquisition of ZF’s ADAS business is a strategic step forward for HARMAN to deliver on its promise to enable a more connected future of smarter and safer vehicles that are responsive to driver and passenger needs,” said Christian Sobottka, Chief Executive Officer and President, Automotive Division, HARMAN. “We look forward to welcoming the ZF ADAS team to the HARMAN family, where their talent and experience will play a key role in shaping the next chapter of the automotive industry’s transformation.“
“The proceeds from the sale will help to significantly reduce the ZF Group’s financial liabilities, said ZF CFO Michael Frick, assessing the impact of the transaction on ZF’s financial situation. Proceeds from sales, combined with performance measures to increase organic cash generation, contribute to faster debt reduction. By focusing on core competencies and disciplined portfolio management, ZF is strengthening its competitiveness in the long term and creating room for profitable growth. Additionally, ZF – like other market participants – is restructuring its e-mobility business and rearranges unprofitable projects. We expect the adjusted EBIT margin and adjusted free cash flow for financial year 2025 to be in the upper half of the current forecast.”
