Samsung Electronics to acquire HARMAN

    Technology Technology News Samsung Electronics to acquire HARMAN

    Samsung Electronics announced in an official statement last November 14 that it will acquire American company HARMAN.

    According to the agreement, which Samsung says is “definitive,” will purchase all Harman International Industries, Inc. assets at USD 112.00 per share in cash at a 28 percent premium based on HARMAN’s closing stock price on November 11, 2016. The total equity value amounts to approximately USD 8 billion.

    The acquisition, Samsung says, will allow the company to diversify its product line particularly in connected technologies for the automotive industry.

    About 65 percent of HARMAN’s reported sales amounting to USD 7 billion in a span of 12 months ending in September 30 of this year were automotive-related

    “We see substantial long-term growth opportunities in the auto technology market as demand for Samsung’s specialized electronic components and solutions continues to grow. Working together, we are confident that HARMAN can become a new kind of Tier 1 provider to the OEMs by delivering end-to-end solutions across the connected ecosystem,” said Samsung Electronics President and Chief Strategy Officer Young Sohn in the company’s press release.

    Sohn noted that cars are becoming more and more sophisticated through smart technology as with mobile phones.

    Apart from automotive technology, HARMAN also carries consumer and professional audio brands including Harman/Kardon, JBL and AKG.

    The company, through its subsidiaries, have provided audio solutions for various vehicles including models carried by Rolls-Royce, General Motors, Fiat Chrysler and Hyundai.

    The board of directors for both companies have already approved the deal and it only awaits the approval of HARMAN stakeholders. The deal is expected to close mid-2017.

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