Harman International Industries, Incorporated
), a leading infotainment and audio group, recently announced that
it has acquired St. Louis-based Yurbuds LLC. However, the financial
details of the deal were not made public. Yurbuds will join
Harman's lifestyle division and all its personnel will be
Founded in 2008, Yurbuds engages in the production of
custom-sized headphones. With approximately 40 employees, Yurbuds
has an extensive intellectual property portfolio, including more
than 60 patents and 70 trademarks for design and technology,
including headphones, wearables and more.
Harman believes that with the addition of Yurbuds to its
portfolio, the company will be able to develop next generation
headphones designed especially for athletes.
Harman continues with its policy of expanding both internally as
well as externally through strategic acquisitions of small but
niche companies. It had spent around $101.3 million in acquiring
various companies in 2013 alone. Recently, Harman acquired maker of
hardware and proprietary software solutions, AMX LLC for a sum of
Per Gartner, in-vehicle infotainment systems will represent
around $3.0 billion semiconductor market opportunity by 2017.
Hence, being the leading infotainment group, Harman's near-term
prospects are bright.
We believe that Harman's new manufacturing capacities, growing
product pipeline, solid patent portfolio, new awards as well as
product launches will boost its top line and profitability in 2014
Moreover, recently car makers such as BMW, Daimler and VW Group
selected Harman's technology in their car lines. Also, Harman won
customer awards from Toyota to supply infotainment solutions across
its car models in Europe. All these will act as major growth divers
for Harman, going forward.
Additionally, we believe that the recently announced
partnerships with Softbank, Sprint Corp., Trikomsel and Brightstar
will expand Harman's market share, going forward.
Meanwhile, Harman continues to expand due to its partnerships
with the likes of
). However, intensifying competition from
) remains a concern.
Currently, Harman carries a Zacks Rank #3 (Hold).
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