ZF sells its ADAS business to Harman, a leading company in cockpit electronics

ZF Group recently announced the sale of its Advanced Driver Assistance Systems (ADAS) business to Harman, a leader in cockpit electronics in the United States. This will enable Harman to possess the advanced safety and cockpit technologies required by global automakers. The agreed acquisition price is 1.5 billion euros. The transaction still requires necessary regulatory approvals.

Mathias Miedreich, CEO of ZF, stated: "This acquisition of ZF's Advanced Driver Assistance Systems (ADAS) business by Harman marks an important milestone in the strategic realignment of the ZF Group. Harman is our ideal partner, enabling us to fully unlock the growth and innovation potential of our passenger car driver assistance business and creating optimal development prospects for our employees. At the same time, this transaction will help ZF significantly reduce financial liabilities and focus resources on core technologies such as chassis, powertrain, commercial vehicles, and industrial applications, where we are global leaders. ”

According to the agreement, ZF will sell its Advanced Driver Assistance Systems (ADAS) business, including computing solutions, smart cameras, radar technology, and ADAS software functions, to Harman. The business of chassis electronics and electronics for passive safety technology will remain within the ZF Group. ZF will also continue to advance driver assistance and autonomous driving in the commercial vehicle sector.

The combination of HARMAN's and ZF's expertise in Advanced Driver Assistance Systems (ADAS) will enable the newly formed organization to provide integrated or modular solutions tailored to the strategies of various vehicle manufacturers. Simultaneously, through the integration of businesses in safety, perception, intelligence, connectivity, and in-vehicle systems, the organization will deliver a comprehensive driving experience for drivers and passengers, positioning the company as one of the world's leading cross-domain automotive electronics suppliers.

Christian Sobottka, CEO of Harman and President of its Automotive Division, stated: "Our acquisition of ZF's Advanced Driver Assistance Systems (ADAS) business is a crucial step towards achieving Harman's strategic goals, aimed at fulfilling our commitment to creating a smarter and safer connected future for vehicles that meets the needs of drivers and passengers. We look forward to welcoming the ZF ADAS team to the Harman family, whose professional expertise and extensive experience will play a pivotal role in leading the next stage of transformation in the automotive industry.". ”

When assessing the impact of the transaction on ZF's financial position, Michael Frick, ZF's Chief Financial Officer, stated: "The proceeds from the sale will help significantly reduce the financial liabilities of the ZF Group. The combination of sales proceeds and performance measures to enhance organic cash generation capabilities will accelerate debt reduction. By focusing on core strengths and adopting prudent business portfolio management, ZF is enhancing its long-term competitiveness and creating space for profitable growth. In addition, like other market participants, ZF is restructuring its electric drive business and realigning unprofitable projects. We expect the adjusted EBIT margin and adjusted free cash flow for fiscal year 2025 to reach the higher end of the current forecast range."

According to the agreement, 3,750 ZF employees will be transferred to Harman after the transaction is completed. The transaction is subject to approval by relevant regulatory authorities and is expected to be completed in the second half of 2026.