ZF and Harman International have agreed on an enterprise value of €1.5 billion euros for the sale of ZF’s ADAS division, as announced by the supplier based at Lake Constance. However, ZF has not disclosed how Harman will pay this amount. The only certainty is that the transaction remains subject to the necessary regulatory approvals. Upon completion, approximately 3,750 ZF employees are expected to transfer to Harman. The deal is anticipated to close in the second half of 2026.
Harman will acquire ZF’s ADAS business, including its Compute Solutions, smart cameras, radar technology, and driver-assistance software functions. “The electronics for chassis technology and passive safety technology will remain within the group,” the German supplier explained. “ZF will also continue its activities in driver assistance and autonomous driving within its commercial vehicle division.”
At Harman, a specialist in interior electronics, the integration of the ZF unit is expected to create ‘a highly sought-after combination of safety and vehicle interior technologies for automotive manufacturers worldwide.’ The US company aims to ‘offer integrated or modular solutions tailored to different vehicle manufacturers’ strategies.’
For ZF, the sale marks a significant step in the realignment of the entire group. Earlier this autumn, management agreed on a package of substantial job cuts with employee representatives for the struggling Electrified Powertrain Technologies division, though the sale of ‘Division E’ was initially taken off the table. However, parts of the ADAS division are now being divested.
“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 ZF CEO Mathias Miedreich. “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 of Harman’s Automotive Division. “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.”
zf.com
