The auto-tech and audio company will be acquired by Samsung.
Samsung Electronics and Harman International Industries, Incorporated have announced a definitive agreement which will allow Samsung to acquire HARMAN for $112 per share in cash for a total equity value of approximately $8 billion. The deal includes HARMAN's various audio brands and will greatly expand Samsung's presence in the connected technologies and automotive electronics markets.
"HARMAN perfectly complements Samsung in terms of technologies, products and solutions, and joining forces is a natural extension of the automotive strategy we have been pursuing for some time," said Oh-Hyun Kwon, Vice Chairman and Chief Executive Officer of Samsung Electronics. "As a Tier 1 automotive supplier with deep customer relationships, strong brands, leading technology and a recognized portfolio of best-in-class products, HARMAN immediately establishes a strong foundation for Samsung to grow our automotive platform. Dinesh Paliwal is a proven global leader and, in our extensive discussions, we have developed deep respect for him, his strong senior leadership team and HARMAN's talented employees. HARMAN's sustained track record of rapid growth fueled by technology leadership and an unmatched automotive order pipeline reflects its commitment to innovation and customers."
As part of the deal, HARMAN will operate as a standalone subsidiary of Samsung, and will continue to be led by the current management team. Likewise, Samsung plans to keep HARMAN’s work force, headquarters, and facilities. Though the main emphasis of the purchase is on HARMAN's leading presence in connected car solutions and in-vehicle tech, the Samsung acquisition will also include HARMAN's various consumer and professional audio brands like JBL, Harman Kardon, Mark Levinson, AKG, Lexicon, Infinity, and Revel -- allowing Samsung to offer enhanced customer benefits and user experiences across the company's entire collection of consumer and professional products.
Samsung's acquisition of HARMAN is expected to close in mid-2017.