US-based Harman has entered into an agreement to buy Interchain Solution, an Indian company that specializes in telematics, fleet management, in-vehicle infotainment and location-based services.
The deal is subject to “customary closing conditions” but Harman expects it to close in late August.
Harman sees the acquisition as a way to expand its presence in the large Indian market and augment its own automotive infotainment and telematics offerings.
Interchain is the company behind products like GTVectra and GWTrack, which Harman sees as an ideal complement to its current portfolio.
Taking over Interchain will also give Harman a bigger share of the market for commercial vehicles.
“We are delighted to have the outstanding team of specialists from Interchain join us,” said Dinesh C. Paliwal, chairman, president and chief executive officer of Harman, in a statement. “Some of the freshest and most innovative ideas are being developed in India and other emerging markets, and we will harness this energy such that customers get magnified gains through use of emerging technologies and platforms combined with Harman’s highly successful and proven infotainment solutions.”
Anand Ramamoorthy, the managing director of Harman’s Indian business, added: “We believe the combination of Interchain and Harman will provide our customers in both established and emerging markets with a highly compelling proposition. In addition to enhancing our competitiveness, speed to innovate and spread of offerings in the space, it will allow us to offer our clients truly integrated and globally competitive products and solutions.”
Interchain’s existing customers include the likes of TeleAtlas, ALJACS Toyota and MapmyIndia, as well as various government bodies.
The company says it will continue to work with those customers on maintaining custom solutions as it merges with Harman.