Posted Mon Mar 13, 2017 at 11:30 AM PDT by Steven Cohen
The auto-tech and audio company has officially been acquired by Samsung.
Following initial reports of the deal back in November, Samsung Electronics has announced the completion of their acquisition of Harman International Industries, Incorporated. As part of the agreement, HARMAN stockholders will receive $112.00 per share in cash for a total equity value of approximately $8 billion. The deal includes HARMAN's various audio brands and now greatly expand Samsung's presence in the connected technologies and automotive electronics markets.
"Today is a historic moment for us. The close of this transaction opens the door to create substantial growth opportunities and deliver greater benefits for customers worldwide," said Young Sohn, President and Chief Strategy Officer of Samsung Electronics, and Chairman of the Board, HARMAN. "We see transformative opportunities in the car – and a future which seamlessly connects lifestyle across automotive, home, mobile and work. Samsung's and HARMAN’s leadership in these spaces perfectly positions Samsung to be the preferred partner to our OEM customers. In addition, bringing together HARMAN's iconic audio brands and capabilities paired with Samsung’s leading display technologies will deliver enhanced audio and video experiences to consumers and professional end markets. And most importantly, we are enthusiastic about our common vision, the similarities in our culture of innovation, and the added value we can create for customers. We look forward to working with all of HARMAN’s employees to execute on our vision."
As a result of the agreement, HARMAN's common stock has ceased trading and has been delisted from the New York Stock Exchange. HARMAN will now operate as a standalone subsidiary of Samsung, and will continue to be led by the current management team. Likewise, Samsung is keeping 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 also includes 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.
"We are excited to have completed the transaction, which provides compelling cash value to our stockholders, benefits our customers and provides new opportunities for our employees," said Dinesh Paliwal, HARMAN President and CEO. "Samsung shares our commitment to our customers and our culture of speed, innovation and execution. Samsung provides HARMAN with the scale, platform and complementary technologies to accelerate growth and extend our global market leadership in automotive, smart audio and connected technologies. Recognizing the importance of partnerships in an increasingly connected world, particularly in automotive, we are poised to leverage our combined teams and resources to produce even greater value for our customers. Working closely with automakers and other technology companies, Samsung and HARMAN will define – and drive – the future of automotive."
The closing of the acquisition comes with approval of the transaction by HARMAN stockholders and receipt of all necessary regulatory approvals in the United States and certain foreign jurisdictions.
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