Samsung Electronics’ unit Harman is set to acquire ZF Group’s advanced driver-assistance systems business for 1.5 billion euros ($1.8 billion), marking a significant expansion in automotive technology. The deal targets ZF’s driver assistance arm, a key player in advanced driver-assistance systems from the German company ZF Group. Announced on December 23, 2025, the acquisition positions Harman to bolster its presence in the rapidly growing ADAS market and deepen its role in vehicle software and safety features.
Announcement of the Acquisition
Samsung Electronics confirmed that its automotive and connected technologies subsidiary Harman will acquire ZF Group’s ADAS business as part of a strategic push deeper into the vehicle technology sector. The transaction centers on ZF’s established driver assistance arm, which develops systems that help cars monitor surroundings, maintain lanes, and avoid collisions, capabilities that are increasingly standard in new vehicles from compact hatchbacks to premium SUVs. By taking over a business that already supplies major automakers, Harman is moving beyond infotainment and connectivity into the core safety and automation features that underpin next-generation vehicles.
The deal, which was publicly revealed on December 23, 2025, represents a fresh development in Samsung’s expansion into vehicle software and electronics. ZF’s driver assistance arm, described in the announcement as a dedicated ADAS operation, brings engineering teams, intellectual property, and long-term supply relationships that can accelerate Harman’s roadmap for partially automated driving features. For automakers under pressure to meet stricter safety regulations and consumer expectations for features like adaptive cruise control and automatic emergency braking, the combination of Samsung’s semiconductor capabilities and ZF’s ADAS know-how signals a more integrated technology offering.
Financial Terms of the Deal
The acquisition is valued at 1.5 billion euros, equivalent to $1.8 billion, a price that underscores how central driver-assistance technology has become in the automotive value chain. That valuation reflects not only existing revenue from supplying ADAS components and software but also the growth potential as more vehicles adopt higher levels of automation. In practical terms, the 1.5 billion euro price tag signals that Samsung is prepared to commit substantial capital to secure a foothold in safety-critical automotive systems, a segment that has historically been dominated by European and Japanese suppliers.
Reporting on the transaction notes that the pricing highlights the strategic value of ZF Group’s ADAS business in a competitive automotive tech landscape, where sensor suites, perception software, and control algorithms are increasingly differentiating factors for carmakers. The financial structure, which focuses on acquiring the Germany-based driver assistance operations as a single integrated unit, underscores Harman’s commitment to investing in Germany-based driver assistance operations rather than building similar capabilities from scratch. For stakeholders, the size of the deal suggests that Samsung views ADAS not as an experimental side project but as a core pillar of its long-term automotive strategy, alongside chips, displays, and connectivity platforms.
Strategic Impact on Stakeholders
For Samsung affiliate Harman, the acquisition significantly enhances its capabilities in ADAS by integrating ZF’s expertise into its portfolio of in-car audio, connectivity, and digital cockpit solutions. Harman gains access to mature driver-assistance product lines, including camera-based systems and control units that can be paired with Samsung’s processing hardware and cloud services. That combination positions Harman to offer automakers a more complete stack that spans from sensors and on-board computing to user interfaces, potentially influencing how features such as lane-keeping assistance, traffic-jam pilots, and automated parking are delivered in future model years.
For ZF Group, divesting its driver assistance arm allows the German supplier to refocus on core automotive components and systems at a time of intense market shifts toward electrification and software-defined vehicles. By transferring its ADAS business to Harman, ZF can reallocate capital and management attention to areas such as transmissions, chassis systems, and electric drivetrains, while still participating in the broader ecosystem as a partner and customer. The acquisition also signals evolving partnerships in the industry, with Harman gaining a foothold in ZF’s German ADAS operations to drive future innovations that could shape how global automakers integrate safety and automation features into mass-market vehicles.
